India Approves $15.2 Billion Investment in Semiconductor Plants, Including Tata Group's Chipmaking Facility

By Thea Felicity

Feb 29, 2024 01:12 PM EST

BRITAIN-INDIA-STEEL-ENVIRONMENT-LAYOFFS
(Photo : Photo by JUSTIN TALLIS/AFP via Getty Images)
The Tata Steel Port Talbot integrated iron and steel works is pictured in south Wales on February 2, 2024. In the dim light of a pub in the steel producing Welsh town of Port Talbot, Jason Wyatt sips his beer, his voice laden with worry. Last month Tata Steel announced that it would close its last two blast furnaces to make way for a less polluting electric arc furnace that uses recycled scrap and requires far less labour.

India's government has authorized investments totaling $15.2 billion in semiconductor fabrication plants, marking a significant stride towards bolstering the nation's chipmaking capabilities. 

According to BNN Bloomberg, the approval includes Tata Group's ambitious proposal to construct the country's primary chip manufacturing facility, reflecting Prime Minister Narendra Modi's vision for a technologically advanced India.

During a press briefing in New Delhi, Technology Minister Ashwini Vaishnaw disclosed that Prime Minister Modi's cabinet had given the green light to Tata's plans. 

The conglomerate's proposed $11 billion site aims to fabricate approximately 50,000 wafers per month, a critical step towards reducing India's dependence on imported semiconductors.

READ NEXT: Russia's Sokol Oil Delivery to India Faces Delay: Here's Why

In addition to Tata's flagship project, the government also cleared the conglomerate's separate proposal for a $3 billion-plus chip assembly plant. Plus, a packaging venture involving Japan's Renesas Electronics Corp. and the Murugappa Group's CG Power and Industrial Solutions Ltd. received regulatory approval.

Another manufacturing plant to be built by Tata's Group will be in England, totaling $5 billion, as reported by VCPost.

These initiatives signal the Indian conglomerate's resolve to develop a robust semiconductor ecosystem, mirroring global trends and ensuring a reliable domestic supply chain for cutting-edge technologies such as artificial intelligence and autonomous vehicles.

To incentivize investment in semiconductor manufacturing, the Indian government has committed to subsidizing half of the approved projects, with an initial subsidy ceiling set at $10 billion. 

Impressively, this strategic move aims to replicate India's success in attracting global tech giants like Apple Inc., which has established manufacturing operations in the country.

READ MORE: India Set to Block 9 Global Crypto Platforms, Including Binance and Kraken

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics