Telecom Minister Ashwini Vaishnaw has unveiled plans for a swift and decisive leap forward. Following the recent green light from the Union Cabinet, Minister Vaishnaw has confirmed that the construction of all three units is set to commence in the upcoming 100 days. This announcement not only signifies the government’s commitment to expeditious progress but also heralds a new phase of infrastructural advancement within the telecommunications domain.
Against the backdrop of the government’s forward-looking initiatives, a significant stride was made in December 2021 with the introduction of a 76,000-crore chip incentive scheme. Under this program, the Centre pledged to subsidize half of the capital expenditure costs for semiconductor plants. Notably, the recent approvals by the Union Cabinet, as announced on Thursday, indicate a continuation of this transformative scheme, with all cleared proposals set to benefit from a substantial 50 percent subsidy on their capital expenditure costs courtesy of the Centre.
This preface sets the stage for a detailed exploration of the government’s incentive scheme and its ongoing impact on catalyzing advancements in semiconductor manufacturing within the country.
In a strategic expansion of its foray into the semiconductor domain, the Tata Group has unveiled plans to establish a chip assembly plant in Assam, a venture valued at Rs 27,000 crore ($3.25 billion). This move is geared towards meeting the demands of the burgeoning automobile market. Notably, the facility is anticipated to boast a remarkable daily manufacturing capacity of 48 million chips. Concurrently, the Union Cabinet has also greenlit a proposal by CG Power to establish a chip testing facility in Gujarat’s Sanand. In collaboration with Japan’s Renesas Electronics, this facility is set to be a significant investment of Rs 7,600 crore ($916 million).
This preface lays the foundation for a comprehensive exploration of these two dynamic proposals, unraveling the potential impact on the semiconductor landscape and their strategic significance for both the Tata Group and CG Power.