Govt evaluating $21 bn proposals to set up semiconductor chipmaking in India

The Modi government plans to make India a global chipmaking hub. It is evaluating $21 billion proposals from international and domestic companies to set up manufacturing facilities. It is offering incentives to international corporations to set up facilities and promises to bear half the cost of approved projects with an initial budget of $10 billion.

American chipmaker Micron Technology set up a $2.75 billion assembly and testing facility in Gujarat. Israel’s Tower Semiconductor Limited and Tata Group have proposed a $9 billion and a $8 billion chip fabrication facility in Gujarat.

If approved, Tower Semiconductor’s facility will be India's first multinational fabrication plant. The company manufactures components for large corporations like Broadcom Inc. and the electric vehicles industry. It plans to make around 80,000 silicon wafers monthly in the next decade.

Tata plans to partner with Taiwanese Powerchip Semiconductor Manufacturing Corp and set up the plant in Dholera this year.