{"id":42255,"date":"2025-10-27T05:02:25","date_gmt":"2025-10-26T23:32:25","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=42255"},"modified":"2025-10-28T16:30:47","modified_gmt":"2025-10-28T11:00:47","slug":"cabinet-approves-indian-rupee-3300-crore-chip-assembly-plant-in-gujarat","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/cabinet-approves-indian-rupee-3300-crore-chip-assembly-plant-in-gujarat\/","title":{"rendered":"Cabinet Approves \u20b93,300-Crore Chip Assembly Plant in Gujarat"},"content":{"rendered":"<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>Semiconductor manufacturing in India<\/li>\n<li>Chip assembly plant in Gujarat<\/li>\n<\/ul>\n<h2><strong>Why in News?<\/strong><\/h2>\n<p>The union cabinet, chaired by PM Modi, has approved the proposal of Kaynes Semicon to set up a semiconductor unit in Gujarat with an investment of INR 3,300 Cr. This is the <strong>fifth semiconductor unit<\/strong>, and the <strong>fourth assembly unit<\/strong>, to receive Cabinet approval.<\/p>\n<p>The proposal was approved under the India Semiconductor Mission (ISM).<\/p>\n<h2><strong>Semiconductor manufacturing in India<\/strong><\/h2>\n<ul>\n<li><strong>Need for domestic manufacturing of semiconductors<\/strong>\n<ul>\n<li><strong>Foundation stone of modern electronics industry<\/strong>\n<ul>\n<li>Semiconductors and displays are the foundation of modern electronics industry.<\/li>\n<li>These are critical components that power electronics &#8211; from computers and smartphones to the brake sensors in cars.<\/li>\n<\/ul>\n<\/li>\n<li><strong>To reduce import dependency<\/strong>\n<ul>\n<li>As India does not produce any semiconductors, the country\u2019s demands are met with imports.\u00a0<\/li>\n<li>The demand for semiconductors in India will reportedly reach around USD 100 billion by 2025, up from the current demand of USD 24 billion.<\/li>\n<\/ul>\n<\/li>\n<li><strong>To overcome the disruption in supply-chain<\/strong>\n<ul>\n<li>The absence of local manufacturing affected India the most during the lockdown imposed due to the Covid-19 pandemic.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Geopolitical significance<\/strong>\n<ul>\n<li>In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance.<\/li>\n<li>These are key to the security of critical information infrastructure.<\/li>\n<li>E.g., The Department of Telecommunications has in the past raised concerns over possible bugs in the telecom equipment sold by the Chinese company.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Steps taken by the Govt to promote indigenous semiconductor industry\u00a0<\/strong>\n<ul>\n<li><strong>India Semiconductor Mission (ISM)<\/strong>\n<ul>\n<li>Launched in 2022, ISM aims to establish a robust semiconductor ecosystem within the country.\u00a0<\/li>\n<li>This initiative, housed under the Digital India Corporation, is tasked with catalysing semiconductor manufacturing, packaging, and design capabilities in India.<\/li>\n<li>As an independent business division, the ISM possesses the necessary administrative and financial autonomy to drive the program\u2019s efficient implementation.\u00a0<\/li>\n<li>Moreover, it boasts an advisory board comprising leading global experts in the semiconductor domain, ensuring strategic guidance and expertise.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li><strong>SemiconIndia Programme<\/strong>\n<ul>\n<li>The Union Cabinet approved the Semicon India Programme in 2021 with a budget of INR 76,000 crore.\u00a0<\/li>\n<li>The program aims to create a sustainable semiconductor and display ecosystem in India.<\/li>\n<li>It does so by offering attractive incentives to companies involved in various semiconductor-related sectors, including Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors, Sensors, and Semiconductor Packaging.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Design Linked Incentive (DLI) Scheme<\/strong>\n<ul>\n<li>Uder this, support is provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), etc.\u00a0<\/li>\n<li>The Centre for Development of Advanced Computing (CDAC) is the nodal agency for implementing the <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/diis\/\" target=\"_blank\">DLI Scheme<\/a>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Modified Scheme for Setting up of Semiconductor Fabs<\/strong>\n<ul>\n<li>The Modified Scheme for Setting up of Semiconductor Fabs in India provides a 50% fiscal support of the project cost for the setting up of semiconductor fabs in India.<\/li>\n<li>This scheme is part of the Semicon India program.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Fiscal Support\u00a0<\/strong>\n<ul>\n<li>The Central Government has announced incentives for every part of supply chain including electronic components, sub-assemblies, and finished goods.<\/li>\n<li>In total, Government has committed support of Rs. 2,30,000 crore (USD 30 billion) to position India as global hub for electronics manufacturing with semiconductors as the foundational building block.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Chips to Startup (C2S) programme<\/strong>\n<ul>\n<li>The government has also introduced the Chips to Startup (C2S) programme aims to train 85,000 engineers (Bachelors, Masters and Research level combined) qualified in ESDM disciplines over a period of 5 years.\n<ul>\n<li>ESDM \u2013 Electronic System Design and Manufacturing\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Chip assembly plant in Gujarat<\/strong><\/h2>\n<ul>\n<li><strong>About the news<\/strong>\n<ul>\n<li>In a significant move towards building a robust semiconductor ecosystem, the Union Cabinet approved the proposal for Kaynes Semicon Pvt Ltd to establish a semiconductor manufacturing unit in Sanand, Gujarat.\u00a0<\/li>\n<li>This initiative, which involves an investment of \u20b93,300 crore, is expected to enhance India&#8217;s semiconductor production capabilities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Key highlights of the plant<\/strong>\n<ul>\n<li>The capacity of this unit will be 60 lakh chips per day.<\/li>\n<li>The chips produced in this unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India\u2019s ambitions to become a major chip hub<\/strong>\n<ul>\n<li>India is striving to become a major semiconductor hub, similar to the United States, Taiwan, and South Korea, by attracting foreign companies to establish operations within the country.\u00a0<\/li>\n<li>Notably, India has approved an $11 billion fabrication plant by Tata Electronics in partnership with Taiwan\u2019s Powerchip and three chip assembly plants by Tatas, US-based Micron Technology, and Murugappa Group\u2019s CG Power with Japan\u2019s Renesas.\u00a0<\/li>\n<li>Additional proposals include a \u20b978,000-crore fabrication plant by Israel\u2019s Tower Semiconductor and a \u20b94,000-crore assembly plant by Zoho, highlighting the country&#8217;s growing ambitions in the semiconductor industry.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q.1. What is the significance of the \u20b93,300-crore chip assembly plant in Gujarat?<\/strong><\/h3>\n<p>The \u20b93,300-crore chip assembly plant in Gujarat is a crucial step towards building a robust semiconductor ecosystem in India, reducing import dependency, and positioning India as a global chip manufacturing hub.<\/p>\n<h3><strong>Q.2. How does the India Semiconductor Mission support the semiconductor industry?<\/strong><\/h3>\n<p>The India Semiconductor Mission supports the semiconductor industry by offering financial incentives and fostering a sustainable ecosystem for semiconductor manufacturing, packaging, and design in India.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/india\/cabinet-oks-3300-cr-chip-assembly-plant-in-gujarat-9547031\/\" target=\"_blank\" rel=\"nofollow noopener\">Cabinet OKs `3,300-cr chip assembly plant in Gujarat<\/a> | <a href=\"https:\/\/www.pmindia.gov.in\/en\/news_updates\/cabinet-approves-one-more-semiconductor-unit-under-india-semiconductor-mission-ism\/?comment=disable#:~:text=The%20Programme%20for%20Development%20of,outlay%20of%20Rs.%2076%2C000%20crore.\" target=\"_blank\" rel=\"nofollow noopener\">PM India<\/a> | <a href=\"https:\/\/ism.gov.in\/about-semiconindia-programme.html\" target=\"_blank\" rel=\"nofollow noopener\">India Semiconductor Mission<\/a> | <a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=1781723\" target=\"_blank\" rel=\"nofollow noopener\">PIB<\/a> | <a href=\"https:\/\/economictimes.indiatimes.com\/industry\/cons-products\/electronics\/how-close-is-india-to-becoming-a-global-chip-hub-cabinet-shares-a-report\/articleshow\/112991937.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\">Economic Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet has approved a \u20b93,300-crore semiconductor assembly plant in Gujarat under the India Semiconductor Mission, boosting India&#8217;s ambitions to become a global chip hub.<\/p>\n","protected":false},"author":5,"featured_media":42256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-42255","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/42255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=42255"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/42255\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/42256"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=42255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=42255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=42255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}