Chip Manufacturing Set to Commence in Gujarat, CM Patel Announces
Gujarat is poised to become a significant player in the semiconductor industry, as Chief Minister Bhupendra Patel announced that chip manufacturing will commence soon in the state. The announcement was made during the inauguration of the 'Gujarat SemiConnect Conference 2024', held at the Mahatma Mandir convention centre.
The conference, which highlighted various aspects of the semiconductor sector, saw collaboration from key industry players including Micron Technology, Tata Electronics, and CG Power, all of whom are building semiconductor plants in Gujarat. These companies have partnered with the state government as knowledge partners for the conference.
Semiconductors, crucial components in electronic devices, are used in communications, military systems, healthcare, computing, transportation, and clean energy. The state's proactive approach includes implementing a dedicated policy for the semiconductor sector, making Gujarat the first Indian state to do so. Patel noted that Micron Technology’s decision to set up a chip manufacturing plant in Gujarat was facilitated by the quick allocation of land at Sanand.
The Chief Minister emphasized that Gujarat offers 'plug-and-play' facilities at the Dholera Special Investment Region (SIR) for semiconductor players. Tata Electronics, in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Co, is establishing India’s first commercial semiconductor fabrication facility at Dholera SIR. Meanwhile, CG Power is setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand.
Patel expressed confidence that chip manufacturing would commence soon, highlighting ongoing efforts to develop a skilled workforce for the sector.
Mona Khandhar, Principal Secretary of the Department of Science and Technology, provided updates on the progress of the chipmaking projects. Micron Technology has activated temporary facilities and is advancing its state-of-the-art Assembly, Testing, Marking, and Packing (ATMP) facility worth Rs 22,500 crore, which is set to be commissioned early next year at Sanand. Tata Electronics, in partnership with PSMC Taiwan, will establish semiconductor facilities worth Rs 91,000 crore at Dholera, with operations expected to begin by 2026. CG Power, collaborating with Renesas of Japan, is set to build an OSAT facility worth Rs 7,600 crore at Sanand, scheduled for commissioning by 2025.
During the conference, Gursharan Singh, Senior Vice President at Micron Technology, emphasized the need for robust infrastructure to support the semiconductor sector. He noted that while construction of Micron’s primary facility in Sanand is underway, technology transfer and product qualification at the mini facility are progressing on schedule. Singh stressed the importance of uninterrupted power supply, clean water, and well-developed civic infrastructure, including housing, transportation, and amenities, to support semiconductor operations. He also highlighted the necessity of direct flights between Ahmedabad and semiconductor hubs like Taiwan, South Korea, and Japan to facilitate investments and collaboration.
Arun Murugappan, Chairman of Tube Investments, echoed the call for infrastructure development, drawing parallels with Taiwan’s semiconductor cluster. He emphasized the need for a robust infrastructure that includes power, water, and connectivity, along with co-location of raw material suppliers, equipment suppliers, research institutions, and universities.
Randhir Thakur, CEO and MD of Tata Electronics, announced a commitment of $11 billion towards the semiconductor fab project in Dholera, which is expected to generate over 20,000 jobs. Thakur highlighted the project’s focus on promoting local industry and noted that over 2,000 ecosystem partners and suppliers are already involved.