Chip manufacturing to start in Gujarat soon

Gujarat has rolled out a dedicated policy for the semiconductor sector, and chip manufacturing will commence soon in the state, Chief Minister Bhupendra Patel announced. He assured that his government will provide necessary assistance to the industry during his speech at the 'Gujarat SemiConnect Conference 2024' at the Mahatma Mandir convention centre. Micron Technology, Tata Electronics, and CG Power, which are building semiconductor plants in Gujarat, have collaborated with the state government as knowledge partners for the conference. Semiconductors, also known as integrated circuits or microchips, are essential components of electronic devices, playing crucial roles in communications, military systems, healthcare, computing, transportation, clean energy, and more. The Chief Minister emphasised Gujarat's pioneering role, being the first Indian state to implement a dedicated policy for the semiconductor sector. "Within a few months of its implementation in 2020, Micron Technology decided to set up a chip manufacturing plant in Gujarat. We allotted them land at Sanand in just one week," Patel said. Gujarat offers ?plug-and-play? facilities at the Dholera Special Investment Region (SIR) for semiconductor players. Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Co are establishing the country's first commercial semiconductor fab at Dholera SIR. CG Power is setting up an OSAT (Outsourced Semiconductor Assembly and Test) facility at Sanand. "I am confident chip manufacturing will commence soon in Gujarat. We are also working on creating manpower for this sector," the CM added. Top leaders from Micron Technology, Tata Electronics, and CG Power highlighted the need for infrastructure development, rail and road connectivity, and other facilities near Dholera and Sanand. Mona Khandhar, Principal Secretary, Department of Science and Technology, informed that the three chipmakers are on course to start their operations. Micron's temporary facilities are active, and its state-of-the-art ATMP (Assembly, Testing, Marking, and Packing) facility worth Rs 22,500 crore will be commissioned early next year at Sanand. Tata Electronics, in partnership with PSMC Taiwan, is setting up facilities worth Rs 91,000 crore at Dholera, expected to begin operations by 2026. CG Power, in partnership with Renesas, Japan, is establishing an OSAT facility worth Rs 7,600 crore at Sanand, to be commissioned by 2025. Gursharan Singh, Senior Vice President, Micron Technology, emphasised the importance of robust infrastructure. "For India to become a semiconductor nation, it is imperative that power supply remains uninterrupted and consistent, and that clean water supply is ensured right at the doorsteps of semiconductor companies," Singh said. Singh also highlighted the need for civic infrastructure in Sanand, including housing options, high-speed rail connectivity, public transport, luxury hotels, international schools, and hospitals. Direct flights between Ahmedabad and semiconductor nations like Taiwan, South Korea, and Japan are also essential for facilitating new investments and collaboration. Arun Murugappan, Chairman, Tube Investments, stressed the need for infrastructure similar to Taiwan?s semiconductor cluster. Randhir Thakur, CEO and MD, Tata Electronics Private Limited, announced a $11 billion investment in the semiconductor fab project in Dholera, which will generate over 20,000 jobs and bring in more than 2,000 ecosystem partners and suppliers.

This project marks a significant milestone for India's semiconductor industry, fostering local industry growth and contributing to the country's economic development. (Source: ET & PTI)

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