NEW DELHI: Tata Group’s investment for the fab manufacturing in Gujarat will be very big, said telecom minister Ashwini Vaishnaw on Thursday. The minister, speaking at the tenth edition of Vibrant Gujarat Global Summit, said the government will soon come up with a Cabinet note seeking approvals for the project. The minister said its proposed investment is important because it will serve a wider spectrum of opportunities, right from fab to OSAT (Outsourced Semiconductor Assembly and Test).
“The fab proposed in Dholera will be a semiconductor chips manufacturing factory, which will be a ‘very big investment’… already there is a lot of good progress on it. Very soon, we will take it to the Cabinet and construction will begin after that,” said Vaishnaw.
The salt-to-software conglomerate on January 10, 2024, announced to set up a fab in Dholera, Gujarat. Tata Sons Chairman Natarajan Chandrasekaran said the company is on the verge of concluding and announcing a huge semiconductor fab in the state, and it is about to complete the negotiations and start in 2024. However, the Group needs a technical partner to execute the projects. However, the government didn’t approve the application of Anil Agarwal-led-Vedanta Limited for not having a technical partner. On this Vaishnaw said Tata Group will tie up with a technical partner to set up the project, but declined to share the name of partner or details of the investment.
India has earmarked $10 billion incentive for setting up a semiconductor manufacturing ecosystem in the country. Companies such as US-based Micron Technology and AMD have pledged investment in semiconductor manufacturing plants. It also has collaborated with the US, Japan, and the European Union to establish semiconductor supply chain and innovation. Semiconductor critical parts maker Simmtech
Recently, Korean company Simmtech, which is into making semiconductor critical parts, has signed a MoU with the state government to invest `1,250 crore in the sector.