The Tata Group and South Korea’s Simmtech have recently unveiled their plans to boost the semiconductor industry in Gujarat, India. These investments are expected to significantly contribute to the growth and development of the semiconductor ecosystem in the country.
Tata Group, led by chairman N Chandrasekaran, announced that they are in the final stages of concluding a “huge semiconductor fabrication unit in Dholera.” The operations of this unit are set to commence later this year. The company’s investment in Gujarat will further solidify its position in the semiconductor market and strengthen India’s presence in the global semiconductor ecosystem.
Simmtech, the world’s largest manufacturer of semiconductor substrate, has signed a Memorandum of Understanding with the Gujarat government to establish a plant near the Micron plant in Sanand. The company aims to replicate its success in China and Malaysia by investing in India. Simmtech’s commitment to creating an uninterrupted supply chain network and supporting Micron’s semiconductor plant in Gujarat will contribute to the overall growth of the semiconductor industry in the region.
In addition to these investments, Micron, a leading US chipmaker, has also made significant strides in the Indian semiconductor market. The company has signed an MoU with the New Age Makers Institute of Technology (NAMTECH) to develop talent for its semiconductor operations in India. Micron has already hired over 200 employees for its Indian plant, which is scheduled to begin operations in the first half of 2025.
The investments made by Tata Group and Simmtech, along with Micron’s ongoing efforts, will accelerate the emergence of Gujarat as the Electronics System Design and Manufacturing (ESDM) hub for India and the larger South Asian region. These developments will position India as a key player in the global semiconductor industry.
While India still has some catching up to do compared to leading manufacturing countries like Taiwan and China, the recent investments and focus on the semiconductor industry demonstrate India’s commitment to becoming a major player in this sector. The establishment of manufacturing facilities, combined with the country’s strong semiconductor design capabilities, will contribute to India’s self-reliance and emergence as an ESDM powerhouse in the next decade.
The investments by Tata Group, Simmtech, and Micron highlight the importance of creating a robust ecosystem for semiconductor manufacturing. The complex nature of semiconductor production requires a strong focus on the entire supply chain and the availability of various essential elements. By investing in the ecosystem and ensuring a skilled workforce, India can position itself as a competitive player in the global semiconductor market.