NEW DELHI: Tata Group announced on Wednesday its plans to build a new semiconductor fabrication plant in Gujarat this year. Tata Sons Chairman Natarajan Chandrasekaran, while speaking at the Vibrant Gujarat Global Summit, said that the company is on the verge of completing negotiations, and the fab is set to commence operations in 2024.
“We are about to complete negotiations for the semiconductor fab in Dholera and will start operations in 2024,” said Chandrasekaran.
With this announcement, Tata Group becomes the second Indian conglomerate to express interest in India’s semiconductor industry. Anil Agarwal-led Vedanta Group has also shown interest in chip manufacturing, having applied for $10 billion in PLI (Production Linked Scheme) incentives.
At the summit, South Korea's Simmtech announced its plans to open a chip component plant in Gujarat, alongside the upcoming semiconductor testing and packaging facility of U.S. chipmaker Micron.
Tata Group will additionally commence construction of a 20-gigawatt battery storage factory in Gujarat in the next couple of months, he added.
According to the Ministry of Electronics and Information Technology, which oversees the semiconductor program, a total of 45 applications were received under the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India. This includes six applications for setting up semiconductor fabs, three for setting up Display fabs, and ten for setting up compound and ATMP facilities. While one application has been approved under the ATMP scheme, nine have been approved under the Design Linked Incentive Scheme.