Top industry bodies on Friday hailed the government’s decision to clear three semiconductor fabrication (fab) manufacturing projects worth Rs 1.3 lakh crore, saying that the emergence of the country as a global semiconductor manufacturing destination “no longer seems to be a distant dream.”

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved three semiconductor units that will start construction within the next 100 days and generate direct employment of 20,000 advanced technology jobs and nearly 60,000 indirect jobs.

Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA) told IANS that by 2027, “India will have the fab and Outsourced semiconductor assembly and test (OSAT) units producing.”

“By the end of the decade, we may have more than 10 fabs and 20 OSAT units in production, besides many semiconductor product design companies,” Mohindroo added.

The semiconductor fab with 50,000 wafers per month capacity will be set up by Tata Electronics Private Ltd (TEPL) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Dholera, Gujarat. This fab will be constructed with an investment of Rs 91,000 crore.

As per Lt Gen Dr SP Kochhar, Director General, Cellular Operators Association of India (COAI), the approval on the establishment of three semiconductor units under the India Semiconductor Mission is a positive and commendable development.

“This serves as an excellent example for our nation towards attaining self-sufficiency in line with our Prime Minister’s vision of ‘Atmanirbharta’ and will further inspire India’s goals to become a global manufacturing and supply chain hub,” Kochhar said in a statement.

Moreover, with the output from these facilities being poised to benefit various sectors and segments, it is expected to provide a fillip to the ‘Digital India’ mission through increased technological prowess and advancement of the indigenous industrial ecosystem, “besides generating employment and attracting more investments in the country.”

India already has deep capabilities in chip design. With these units, the country will develop capabilities in chip fabrication.