Tata Group announced at the Vibrant Gujarat Global Summit on Wednesday (January 10) that it will build a semiconductor factory in Dholera, Gujarat. At the same time, Union Electronics and Information Technology Minister Ashwini Vaishnaw said on Thursday that this investment of Tata Group will be huge, and a cabinet note will soon be presented regarding the approval of the project. Vaishnav further said at the Vibrant Gujarat Global Summit that Tata’s proposed investment is important as it will provide comprehensive services from fab to outsourced semiconductor assembly and testing (OSAT). He also mentioned that the proposed fab in Dholera, Gujarat, will be a semiconductor chip manufacturing factory. There will be a big investment by the company in this.
Vaishnav said, “A lot of good progress has already been made on this. We’ll take it to the cabinet very soon, and after that, the construction will start. This project will require approval from the Union Cabinet.”
Tata Sons Chairman, N Chandrasekaran announced that the group will set up a big semiconductor chip manufacturing factory in Dholera. Talks in this regard are in the final stages. The project will start in 2024. The group needs a technical partner to execute the projects. The government didn’t approve the application of Anil Agarwal-led Vedanta Limited for not having a technical partner.
On this, Vaishnaw said Tata Group will tie up with a technical partner to set up the project, but declined to share the name of the partner or details of the investment.
He also stated that the semiconductor fab is a foundational industry that has a wide impact. Meanwhile, he said that South Korean company Simmtech, associated with the semiconductor industry, has signed to invest Rs 1,250 crore. One-fourth of this will come from the government under the capital subsidy scheme. The minister said Gujarat has given 30 acres of land to Simtech in Sanand to set up a factory.
India has earmarked $10 billion in incentives for setting up a semiconductor manufacturing ecosystem in the country. Companies such as US-based Micron Technology and AMD have pledged investment in semiconductor manufacturing plants. It has also collaborated with the US, Japan, and the European Union to establish semiconductor supply chains and innovation.
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