Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, has recently revealed that the Tata Group‘s investment in the semiconductor fab manufacturing plant in Gujarat is set to be “very big”, at the Vibrant Gujarat Global Summit. The project, slated for Dholera, Gujarat, is expected to cover a wide range of opportunities, ranging from semiconductor chip manufacturing to Outsourced Semiconductor Assembly and Test (OSAT).
Tata Group, a global company with a storied history, has set its sights on launching advancements yet again. Known for its diverse portfolio spanning industries like automotive, steel, and technology, Tata Group is one of the driving forces in shaping the economic landscape of India.
Mr Vaishnaw, speaking about the forthcoming Semiconductor project of Tata Group at Dholera, highlighted the important role it will play in India’s technological domain. He stated that the proposed fab in Dholera would be a massive investment in semiconductor chip manufacturing, with significant progress already made.
“Very soon, we will take it to the Cabinet, and construction will commence thereafter,” Mr Vaishnaw assured reporters, underlining the importance of obtaining the Union Cabinet’s approval for the venture.
Tata Sons Chairman N. Chandrasekaran had earlier announced at the tenth edition of the Vibrant Gujarat Global Summit that the mixed plans to establish a “huge semiconductor fab” in Dholera. The project is currently in the final stages of negotiations, with the timeline set to begin in 2024.
Mr Vaishnaw had confirmed that the Tata Group would collaborate with a technical partner for the venture, avoiding disclosing further details regarding the partner or specific investment details.
The Union Minister stressed the foundational significance of semiconductor fabs, highlighting their multiplier impact on the industry. He expressed optimism about the project’s potential and its contribution to the growth of India’s semiconductor sector.
In addition to the Tata Group’s investment, Mr Vaishnaw also shared news of another significant development in the semiconductor industry. Korean company Simmtech, associated with semiconductor manufacturing, has committed to investing Rs 1,250 crore. The government will provide a capital subsidy of a fourth of the total investment. Simmtech’s factory is slated to be established in Sanand, Gujarat, on a 30-acre land parcel provided by the state government.
Mr Vaishnaw had also highlighted the importance of essential infrastructure, stating that the semiconductor industry requires clean energy, sufficient water, and a stable electricity supply. This aligns with the government’s efforts to facilitate the growth of the semiconductor sector in collaboration with global powerhouses such as the United States, Japan, and the European Union.
The developments at the Vibrant Gujarat Global Summit mark an important move towards establishing India as one of the significant players in the global semiconductor industry. The Tata Group’s investment, coupled with collaborations with technical partners and global associations, contributes in strengthening India’s vision towards technological advancements and economic growth.