Tata Group has announced its plans to construct a semiconductor fabrication plant in Gujarat, with operations expected to begin in 2024. This move marks the company’s entry into the semiconductor industry and follows the footsteps of the Vedanta Group, which has also shown interest in chip manufacturing.
The Ministry of Electronics and Information Technology has received a total of 45 applications for the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India. Out of these, six applications are for semiconductor fabs, three for Display fabs, and ten for compound and ATMP facilities. Only one application has been approved so far, under the ATMP scheme, and nine have been approved under the design linked incentive scheme.
In addition to Tata Group’s plans, South Korea’s Simmtech has announced its intentions to establish a chip component plant in Gujarat. This is part of a growing trend of international companies investing in the region. US chipmaker Micron Technology is also set to open a semiconductor testing and packaging facility in Gujarat, becoming the first company to receive an incentive under the semiconductor incentive scheme.
Micron’s memory assembly and test facility will be operational by 2025, creating 5,000 direct jobs for the state. The company’s CEO, Sanjay Mehrotra, expressed his excitement about this development during the Vibrant Gujarat Global Summit, stating that the first phase of clean room space will be operational by early 2025.
This surge in interest in the semiconductor industry in Gujarat signifies the state’s potential and attractiveness in the global market. The establishment of these new facilities will not only bring economic growth but also contribute to job creation and technological advancement in the region.