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Informative Now: India Approves Chip Plants Worth $15.2 Billion

India, which aims to compete with countries such as Taiwan in chipmaking, expects its semiconductor market to be worth $63 billion by 2026 but does not yet have a chipmaking facility.

Prime Minister Narendra Modi aims to transform India into a global chipmaker, despite setbacks in offering $10 billion in industry incentives.

Indian Electronics Minister Ashwini Vaishnaw stated that construction on the plants will begin within the next 100 days and that they will manufacture and package chips for sectors such as defence, automobiles, and telecommunications.

“This is a big decision for the country and a key accomplishment towards making India a self-dependent country,” Vaishnaw told reporters at the news conference.

He did not provide updates on other key chipmaking applicants but opened a new tab with Indian conglomerate Vedanta (VDAN.NS), Taiwan’s Foxconn (2317.TW), and Israel’s Tower Semiconductor (TSEM.TA).

Tata will collaborate with Taiwan’s Powerchip (6770.TW) to establish India’s first chipmaking plant worth 910 billion rupees in Dholera, while CG Power (CGPO.NS) will collaborate with Japan’s Renesas Electronics Corp. (6723.T) and Thailand’s Stars Microelectronics (SMT.BK) for a 76-billion-rupee chip packaging plant in Gujarat.

Tata Semiconductor Assembly and Test Pvt. Ltd. will establish a third chip packaging plant in the eastern state of Assam, worth 270 billion rupees, according to Vaishnaw.

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