Tata, CG Power to create over 72,000 jobs with chip units

Tata Group, which is coming up with its fabrication unit in Dholera, Gujarat, and assembly, testing, marking, and packaging (ATMP) unit in Morigaon, Assam. The Dholera unit is expected to generate around 50,000 jobs, while another 20,000-22,000 jobs will come up at the Assam unit.

On the other hand, CG Power is looking to employ over 5,000 people.

“This is only the start. There will be expansion. We are looking at 50,000 jobs here and at least 20,000- 22,000 jobs in Assam. But, it will take time. We will further expand as we cross early milestones,” N Chandrasekaran, chairman of Tata Sons, said at the ground breaking ceremony of the three semiconductor projects. He said the company is accelerating the timeline for chip production and will cater to the requirements of various sectors, including automotive, power, electronics, consumer, and medical, among others.

“Typically, a fab takes about four years. Our goal is to produce chips in the calendar year 2026. Hopefully, in the latter part of the year. Assam may be done earlier. We may go commercial production in Assam even in late 2025 or early 2026,” Chandrasekaran said.

Tata group has partnered with Taiwan-based Power Semiconductor Manufacturing Corp (PSMC) for the country’s first Rs 91,000 crore semiconductor fabrication plant. Besides, it is also investing Rs 27,000 crore in the ATMP project in Assam.

Tata’s semiconductor facility can produce chips in 28 nanometer technology and other higher nodes. The project will cater to industries like high-performance computing, electric vehicles, defence, and consumer electronics, among other things.

CG Power has formed a joint venture with Renesas and Stars Microelectronics for its assembly and testing unit. The facility will be set up in a land area of around 28 acres with an investment of Rs 7,600 crore spread over a period of five years.

“We are very keen to establish India’s semiconductor ecosystem and plan to build a world-class OSAT (outsourced semiconductor assembly and test) facility at Sanand. We intend to commence production in the next 2.5 to 3 years,” said S Vellayan, chairman, CG Power and Industrial Solutions. With its legacy and advanced chip packaging, the company will cater to industries such as automotive, consumer, industrial, and 5G.

CG Power will hold a 92.3% in the joint venture, while Renesas and Stars Microelectronics will hold 6.8% and 0.9%, respectively.

As per the government’s estimate, the chip projects approved will generate direct employment of 20,000 advanced technology jobs and 100,000 indirect jobs.

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