Which companies signed the Fiscal Support Agreement (FSA) for India’s first commercial semiconductor fab in Gujarat?

The Correct Answer is India Semiconductor Mission, Tata Electronics, and Tata Semiconductor Manufacturing.

 In News

• India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a Fiscal Support Agreement (FSA) for India’s first commercial semiconductor fab in Dholera, Gujarat.

• The agreement marks a major milestone in India’s technological self-reliance under the modified programme for semiconductor & display manufacturing ecosystem in India.

• Total investment for the semiconductor fab project in Dholera is over ₹91,000 crore, with a capacity of 50,000 wafers per month (WSPM).

• The Government of India, through the India Semiconductor Mission, will provide 50% fiscal support for eligible project costs on a pari-passu basis, reflecting the national commitment to build a world-class semiconductor ecosystem in India.

• The project is expected to generate over 20,000 direct and indirect skilled jobs, contributing to India’s transformation into a global manufacturing powerhouse.

• Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) will bring its expertise to the project, forming a strategic technological alliance with India.

• The facility will cater to critical global semiconductor markets in sectors like automotive, computing, communications, and artificial intelligence.

• This project aims to drive technological innovation, enhance India’s economic growth, and establish India as a reliable partner in the global semiconductor supply chains.