Gujarat is set to begin chip manufacturing soon, announced Chief Minister Bhupendra Patel on Friday. He assured that the government will provide all necessary support to the industry. Speaking at the ‘Gujarat SemiConnect Conference 2024’ in Mahatma Mandir, Patel highlighted the state’s new semiconductor policy and partnerships with major companies like Micron Technology, Tata Electronics, and CG Power.
Semiconductors, essential components of electronic devices, are being developed in Gujarat to boost sectors like communications, healthcare, and clean energy. Patel noted that Gujarat is the first state in India to implement a dedicated semiconductor policy. Since its launch in 2020, Micron Technology decided to set up a chip manufacturing plant in Sanand, with land allocated within a week.
Patel also mentioned that Gujarat offers ready-to-use facilities at the Dholera Special Investment Region (SIR) for semiconductor companies. Tata Electronics and Taiwan’s Powerchip Semiconductor are setting up the country’s first commercial semiconductor fab at Dholera SIR. CG Power is establishing a semiconductor assembly and testing facility in Sanand.
Top executives from Micron Technology, Tata Electronics, and CG Power emphasized the need for infrastructure development, including better rail and road connectivity near Dholera and Sanand. Mona Khandhar, Principal Secretary in the Department of Science and Technology, confirmed that the three companies are on track to start operations soon.
Tata Electronics, in partnership with PSMC Taiwan, is investing ₹91,000 crore in semiconductor facilities at Dholera, set to begin by 2026. CG Power, in partnership with Renesas Japan, is investing ₹7,600 crore in an assembly and testing facility at Sanand, to be operational by 2025.
Gursharan Singh of Micron Technology highlighted the need for robust infrastructure, uninterrupted power, and clean water supply for the semiconductor sector. He also stressed the importance of civic amenities like dormitories, housing, high-speed rail connectivity, luxury hotels, international schools, and hospitals near the semiconductor clusters in Sanand and Dholera.
Arun Murugappan of Tube Investments emphasized creating a semiconductor cluster similar to Taiwan’s, with strong infrastructure and co-located suppliers and research institutions. Randhir Thakur of Tata Electronics announced a $11 billion investment in their semiconductor project in Dholera, expected to create over 20,000 jobs and bring in 2,000 ecosystem partners and suppliers.
