Indian Semiconductors Mission (ISM), an arm of the government and Tata Group firms - Tata Electronics and Tata Semiconductor Manufacturing - have inked a pact under which latter would be entitled to fiscal support from the government, according to a joint statement issued on Thursday, March 6.
Tata Electronics has already announced an investment of an estimated $10.45 billion to set up a semiconductor fab unit in Dholera, Gujarat, with a capacity of 50,000 wafer starts per month (WSPM).
The Indian government arm ISM will offer 50 percent fiscal support equally for eligible project costs, the statement said.
“ISM, Tata Electronics Private Limited (TEPL) and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a fiscal support agreement (FSA) in the presence of Chief Minister of Gujarat Shri Bhupendra Patel for India's first commercial semiconductor fab in Dholera, Gujarat,” the statement said.
The Tata Group has teamed up with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) for the plant.