The Union Government has approved the proposals to set up three semiconductor fabrication plants in India, at an estimated cost of Rs 1.26 lakh crore.

Tata Electronics has joined hands with Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) to set up a semiconductor fab in Dholera, Gujarat, for Rs 91,000 crore.

According to IT minister Ashwini Vaishnaw, the Gujarat plant will have a capacity of 50,000 wafers per month and employ 26,000 people. The facility will also generate indirect employment for nearly 1 lakh people.

CG Power, Japan’s Renesas Electronics Corp. and Thailand’s Star Microelectronics will set up a semiconductor unit in Sanand, Gujarat, while the third unit will be set up by Tata Semiconductor Assembly and Test Pvt. Ltd. in Morigaon, Assam.

US-based chip maker Micron is also investing Rs 22,516 crore in a chip assembly plant in India.