The Indian government approves the construction of three plants including Renesas with the aim of fostering the semiconductor industry
🟦 India invests in joint venture semiconductor plant construction with Renesas!
The Indian government has approved the construction of three semiconductor factories. The total investment will be approximately 2.2 trillion yen. Construction of all three plants is expected to begin by June 2024 and be operational after 2026.
Total investment of the three factories
- Joint venture
between Tata Electronics (TEPL) and Taiwan’s PSMC: INR 910 billion (approx. JPY 1.65 trillion) - Tata Semiconductor Assembly and Test (TSAT):
270 billion rupees (approx. 490 billion yen) - Renesas Electronics and three other companies
: 76 billion rupees (about 140 billion yen)
These factories will significantly increase India’s semiconductor production capacity and are expected to create approximately 80,000 jobs. The three factories assemble and test the equivalent of 15 million semiconductor chips per day.
The Indian government had already approved Micron’s proposal to set up a semiconductor division in Sanand, Gujarat.
🟦 Indian Government Invests Heavily in Domestic Semiconductor Industry Development
Against the backdrop of a review of supply chains due to the US-China confrontation and a break from dependence on China, the Indian government is rushing to develop the domestic semiconductor industry. Prime Minister Modi has set out a “Make in India” policy and is aiming for independence in the semiconductor field, and it has been decided to invest a total of 760 billion rupees (about 1.2 trillion yen) over six years. For this reason, we are promoting the attraction of foreign companies, and the construction of this plant can be said to be one of the results.
While India has an abundance of talented engineers, the development of infrastructure such as electricity and water resources is an issue. The construction of this plant is likely to be a step toward overcoming these challenges.
🟦 Summary
The Indian government has approved the construction of three semiconductor factories, including Renesas. This is a major turning point for the Indian semiconductor industry. In the future, it is expected that the construction of these factories will actually proceed and the semiconductor production capacity in India will increase, which will have a significant impact on the global semiconductor supply chain.
Sanand, Gujarat, has the potential to become the hub of the semiconductor industry in India.
