Prime Minister Narendra Modi recently laid the foundation for three chip plants in Gujarat, including two by Tata Electronics and one by CG Power, with a total investment of ₹1.26 lakh crore.
In a monumental leap towards India’s semiconductor manufacturing ambitions, Prime Minister Narendra Modi recently laid the foundation for three chip plants in Gujarat, part of the designated Special Investment Region. This significant investment involves a total commitment of ₹1.26 lakh crore. Among these facilities, Tata Electronics and CG Power are spearheading the initiative to bolster India’s self-sufficiency in semiconductor production.
Key Highlights of the Announcement
- Foundation Stones Laid: Prime Minister Modi laid the foundation stones for three chip manufacturing plants on March 13.
- Investment: Total investment for these facilities is estimated at ₹1.26 lakh crore.
- Locations: Two units are being established in Gujarat, while one will be built in Assam.
Updates on the Semiconductor Manufacturing Plans
Union Minister for Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw, provided updates on India’s semiconductor manufacturing endeavors during the foundation stone-laying ceremony. The anticipated timelines for chip production from these plants are as follows:
- Sanand Plant: The first chip from the semiconductor fabrication plant in Sanand, Gujarat, is expected to roll out in December 2024.
- Dholera Plant: Production from the larger facility planned in Dholera is set to begin by December 2026.
“In December 2026, the first chip from the Dholera plant will be produced. In December 2024, the first chip will be produced from the Sanand plant,” Vaishnaw stated during the event.
A Leap Towards Semiconductor Ecosystem
This ambitious initiative represents a significant boost to India’s semiconductor ecosystem. The event was part of the ‘India’s Techade: Chips for Viksit Bharat’ campaign, aimed at enhancing the country’s standing in the global semiconductor market, alongside the Dholera Smart City project, which aims to create a modern urban infrastructure to support these developments.
Current Developments
- Micron Technology’s Investment: The American chipmaker is investing USD 2.5 billion (approximately ₹22,500 crore) to set up India’s first semiconductor fabrication plant in Sanand, expected to be operational by late 2024.
- Importance of Made in India: Modi emphasized that the ‘Made in India’ semiconductor chips will be instrumental in propelling the nation towards self-reliance and modernization.
Government’s Vision for Semiconductor Manufacturing
The trio of semiconductor facilities, with a total financial commitment of around ₹1.25 lakh crore, aligns with the government’s ambitious Development of Semiconductors and Display Manufacturing Ecosystems in India initiative. Launched in December 2021, this initiative has a total budget of ₹76,000 crore, designed to establish India as a leading semiconductor manufacturing hub.
“When India commits, India delivers, and democracy also delivers,” Modi stated, reiterating the government’s dedication to making India a global player in semiconductor manufacturing.
Approved Semiconductor Units
- Tata Electronics Private Limited (TEPL):
- Investment: ₹91,000 crore
- Collaboration: Partnership with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan.
- Location: Dholera, Gujarat.
- CG Power:
- Investment: ₹7,600 crore
- Collaboration: Partnership with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand.
- Location: Sanand, Gujarat.
- Tata Semiconductor Assembly and Test Pvt Ltd (TSAT):
- Investment: ₹27,000 crore
- Daily Production Capacity: 48 million chips.
- Location: Morigaon, Assam.
Economic Impact and Job Creation
These semiconductor units are expected to generate:
- Direct Employment: Approximately 20,000 advanced technology jobs.
- Indirect Employment: An additional 60,000 jobs, boosting sectors like automotive, electronics, telecom, and industrial manufacturing.
Answering Key Questions
- Which Tata Group built the nation’s first fab in Dholera? Tata Electronics, in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), is establishing the first semiconductor fab in Dholera.
- Which is India’s first semiconductor fabrication plant in Dholera, Gujarat? The semiconductor fabrication plant by Tata Electronics in collaboration with PSMC is the first of its kind in Dholera, Gujarat.
- Which is the first semiconductor plant in India? The first semiconductor plant in India is the facility being established by Micron Technology in Sanand, Gujarat.
- Is Tata investing in Dholera? Yes, Tata Electronics is making a substantial investment in Dholera, with ₹91,000 crore dedicated to the semiconductor fabrication unit.
Conclusion
The establishment of semiconductor plants in Dholera and across Gujarat marks a pivotal moment for India’s tech landscape. With a focus on innovation and self-reliance, these projects are set to transform Dholera into a special investment region, further enhancing its status as a hub for high-tech industries.
Future Prospects for Dholera
As Dholera evolves into a Dholera Smart City, the integration of advanced technologies and infrastructure will create unparalleled opportunities for investment and development. With plans for an international airport and robust connectivity, Dholera is poised to become a focal point for businesses and investors alike.
Investors looking at Dholera’s land prices, residential plots, and project developments can expect promising returns in the years to come. The Dholera Smart City project and its accompanying initiatives are integral to India’s vision of becoming a global leader in semiconductor manufacturing.
