NEW DELHI: Tata Group on Wednesday announced its plans to build a new semiconductor fabrication plant in Gujarat this year. Tata Sons Chairman Natarajan Chandrasekaran, speaking at the Vibrant Gujarat Global Summit, said 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 semiconductor fab in Dholera and will start operations in 2024,” he said.
With this, the Group becomes the second Indian conglomerate to express interest in the 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. However, the company hasn’t divulged any details about applying for the semiconductor incentive scheme yet.
As per the Ministry of Electronics and Information Technology, which oversees the semiconductor programme, 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 Display fabs, and 10 for compound and ATMP facilities. While one application has been approved under the ATMP scheme, nine have been approved under the design linked incentive scheme.
Meanwhile, South Korea’s Simmtech announced its plans to open a chip component plant in Gujarat, alongside the upcoming semiconductor testing and packaging facility of US chipmaker Micron. The US-based semiconductor firm Micron Technology is the first company to get an incentive under the semiconductor incentive scheme.
The company will build a memory assembly and test facility and the first phase of this project will be operational by 2025 in Sanand. The company had already started hiring, and the project will create 5000 new direct jobs for the state. Micron CEO Sanjay Mehrotra during the Vibrant Gujarat Global Summit 2024 said, “First phase of 500,000 square feet of planned clean room space will be operational by early 2025,” said Mehrotra.