First Semicon Fab Expected Within a Year Says IT Minister By CIOTechOutlook Team

First Semicon Fab Expected Within a Year Says IT Minister

CIOTechOutlook Team | Monday, 16 October 2023, 02:33 IST

The country's first electronic chip manufacturing unit is scheduled to be operational within a year. The government has originally set aside USD 10 billion as an incentive for the establishment of a semiconductor manufacturing ecosystem in the nation, which includes a wafer fabrication unit. Wafer fabrication factories are the initial physical chip building blocks utilized in all high-tech electronic goods, according to Union Telecom and IT Minister Aswhini Vaishnaw.

"We are focussing on some niche area where we can take global leadership. Telecom and EV (electric vehicles) have emerged as a big segment for semiconductors. If we focus on developing and manufacturing chips used in these segments then we can become global leaders in these two segments," Vaishnaw added.

He said the work is being done with a focus on these emerging areas. "We should have some good success in the coming months. It will be fab (wafer fabrication), design, manufacturing, complete (ecosystem)," Vaishnaw said.

When asked if it would be in a year, the minister said, "No. We will see success very soon."

He said that with the success of US-based storage chip maker Micron's investment in India, the entire world has become very comfortable about India's capability. Memory chip maker Micron started building a semiconductor assembly plant at Sanand in Gujarat last month. The company in June announced setting up a semiconductor assembly and test plant in Gujarat entailing a total investment of USD 2.75 billion (around Rs 22,540 crore), as per economic times.

Micron will invest up to USD 825 million in two phases to build the factory, with the balance coming from the federal and state governments. According to the minister, Micron component suppliers are also in the advanced stages of finding land in partnership with the state government.