New Delhi: The Union Cabinet on Thursday approved the country's first semiconductor fab to be made by the Tata Group jointly with Powerchip Taiwan. The semiconductor fab will emerge in Dholera with a capacity of 50,000 wafers per month, said IT minister Ashwini Vaishnaw on February 29.

A net investment of ₹27,000 crore will go into the fab. 48 million chips per day will be produced from the unit, once the full capacity is reached.

While addressing a press conference Vaishnaw said, “Today the Prime Minister has taken an important decision to set up semiconductor fab in the country. The first commercial semiconductor fab will be setup by Tata and Powerchip-Taiwan, whose plant will be in Dholera.”

He added, “All three units will start construction within the next 100 days. 50,000 wafer per month will be manufactured. 300 crore chips will be manufactured annually through this facility. Northeast will get its first semiconductor Unit in Assam. 48 million chips per day will be manufactured from here. Cumulative investment in all three units will be one lakh twenty-six thousand crore. The breakdown is investment in FAB will be 91,000 crore. Investment in the Assam unit will be 27,000 crore. Investment in the Sanand unit will be Rs 7,600 crore.”

Meanwhile talking to ANI at the sidelines of the vent, Vaishnaw said, “Today three semiconductor units have been approved by the Union Cabinet. The Prime Minister has always laid emphasis on making India Atmanirbhar and make in India has been a mission for him. As a part of that mission today, the three semiconductor units and the first commercial fab.”

He stated, “This will lay the foundation for a very important sector which is semiconductor which is a foundational industry. The first is a commercial fab. This will be a joint venture of Tata and Power Chip of Taiwan. This plant will basically manufacture about 50 wafers per month. 50 wafers per month will be manufactured in this plant. It will cater to electric vehicles, power electronics, the telecom sector, the defence sector, and consumer electronics.”

He added, “So this will be a big leap for India. This will be a major turnaround point for India's manufacturing sector. The second unit is in Assam. This is again a very significant unit. A large capacity unit. Four crores eighty lakh chips will be manufactured every day from this plant...These three plants will generate about 26,000 direct employment and about one lakh indirect employment.”