Fiscal support pact key step towards Rs 91,000 crore semiconductor project: Centre
India Semiconductor Mission, Tata Electronics Private Limited, and Tata Semiconductor Manufacturing Private Limited have signed a fiscal support agreement (FSA) for the country’s first commercial chip fab in Dholera
- NEW DELHI — In a boost for the domestic semiconductor industry, India
Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata
Semiconductor Manufacturing Private Limited (TSMPL) have signed a fiscal
support agreement (FSA) for the country’s first commercial chip fab in Dholera,
Gujarat.
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- Signed in the presence of Gujarat Chief Minister Bhupendra
Patel at the 'Semiconnect conference' in Gandhinagar, the pact represents a
decisive step forward in strengthening India's technological self-reliance
under the modified programme for semiconductor and display manufacturing
ecosystem in India.
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- Tata Electronics’ semiconductor fab in Dholera commands a
total investment of over Rs 91,000 crore with a capacity of 50,000 wafers
starts per month (WSPM).
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- The government, through the India Semiconductor Mission, has
committed 50 per cent fiscal support on a “pari-passu” basis (on equal footing)
for eligible project costs —demonstrating unwavering national commitment to
building a world-class semiconductor ecosystem within Indian borders.
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- Set to generate over 20,000 direct and indirect skilled
jobs, this project brings Taiwan's Powerchip Semiconductor Manufacturing
Corporation (PSMC) expertise to India, creating a powerful technological
alliance.
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- The facility will address critical global semiconductor
markets in automotive, computing, communications, and artificial intelligence
sectors — transforming India from a technology consumer into a global
manufacturing powerhouse, according to the government.
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- Sushil Pal, CEO of the India Semiconductor Mission,
emphasised that “the government is committed to the timely disbursement of
fiscal support for the execution of this project”.
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- “We are confident that Tata Electronics will play a pivotal
role in strengthening the electronics value chain and make a significant
contribution to India’s overarching goals in this sector,” he mentioned.
