Tata Investment Corporation shares climbed over 5% to hit a new 52-week high of Rs 7,635 in Friday’s trade on BSE after the Union Cabinet approved three semiconductor plant proposals, two of which will be set up by the Tata Group.

The government approved proposals to set up three semiconductor units in Gujarat and Assam with an estimated investment of Rs 1.26 lakh crore. The construction of all three units will start within the next 100 days, Telecom Minister Ashwini Vaishnaw said after the Union Cabinet cleared proposals.

Tata Electronics Private Limited will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan. This unit will be constructed in Dholera, Gujarat. The plant will attract Rs 91,000 crore investment.

The Cabinet also approved Tata Semiconductor Assembly and Test Pvt Ltd’s chip assembly and testing unit in Assam at an investment of Rs 27,000 crore. This will be the first investment in a semiconductor packaging plant by the Assam government. It will be built jointly by the state government and Tata Group.

“This marks the beginning of a new era for India. Tata Electronics is proud to play a prominent role in strengthening the global semiconductor ecosystem. Our partnership with PSMC provides access to a broad technology portfolio in leading edge and mature nodes including 28nm, 40nm, 55nm, 90nm & 110nm and also collaboration for high volume manufacturing. We are confident that the upcoming Fab will support our ambitions of “Make in India, For the World”. We will be able to serve our global customers’ requirements for supply chain resilience and meet the growing domestic demand,” said Dr. Randhir Thakur, CEO and MD, Tata Electronics.

Also Read: Sensex surges 700 points: 4 factors that are behind the rally on Dalal StreetUnion Minister Ashwini Vaishnaw also informed that CG Power — in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand — will set up a semiconductor unit in Sanand, Gujarat.Investment in the Sanand unit is estimated at Rs 7,600 crore.

Tata Sons chairman N Chandrasekaran had last year said that the conglomerate will announce its semiconductor chip fab “very soon,” and “it will be a very big investment.”

Tata Sons’ anticipated capital infusion into new business areas and group priorities – semiconductors, defence, electric vehicles, and Air India, for instance – is set to exceed $120 billion in the coming years, sources told ET.

Initial assessments had pegged about $90 billion of capital deployment by 2027. The lion’s share of investments is earmarked for capital-intensive pursuits like semiconductors and Air India, marking the largest domestic investment commitment in the conglomerate’s history.

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At 10.52 am, the scrip was trading 3.4% higher at Rs 7,520 on BSE. Meanwhile, the stock has also delivered multibagger returns to its investors as it has rallied over 200% in the past six months, while it has gained over 460% in the last two years.

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