The Indian government has shown green light to the construction of three semiconductor plants with an investment of Rs 1.26 trillion (approximately $15.2 billion).
Led by firms including Tata Group and CG Power, the initiative marks a significant milestone in India's quest to compete with countries like China and Taiwan in chipmaking.
India expects its semiconductor market to be worth $63 billion by 2026, but does not have a chipmaking facility yet.
Ashwini Vaishnaw, Minister of Electronics & Information Technology, made the announcement and revealed that the construction is slated to commence within the next 100 days.
These plants will undertake the manufacturing and packaging of chips catering to crucial sectors such as defence, automobiles, and telecommunications, among others, reported Reuters.
"This is a big decision for the country and a key accomplishment towards making India a self-dependent country," Vaishnaw said.
Updates on other key chipmaking applicants, including Indian conglomerate Vedanta, Taiwan's Foxconn, and Israel's Tower Semiconductor, were not provided by him.
Tata Group will collaborate with Taiwan's Powerchip to establish India's inaugural chip manufacturing facility valued at Rs 910 billion in Gujarat's Dholera, the minister said.
Additionally, CG Power will join forces with Japan's Renesas Electronics Corp and Thailand's Stars Microelectronics to construct a chip packaging plant worth Rs 76 billion, also slated for Gujarat.
Vaishnaw added that a third chip packaging plant, valued at Rs 270 billion, will be established in the eastern state of Assam by Tata's subsidiary, Tata Semiconductor Assembly and Test Pvt Ltd.
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