NEW DELHI: Year 2024 has begun on a good note for India’s semiconductor dreams with several domestic and global companies, including Tata Group and US-based Micron Technology, announcing plans to start operations in the country, taking it closer to becoming a semiconductor hub.
The Tata Group has pledged to start a semiconductor fab in the country. Announcing this at the 10th edition of Vibrant Gujarat Global Summit, salt-to-software conglomerate said it has almost completed negotiations and the fab is all set to commence operations in 2024 at Dholera in Gujarat.
“Tata Group is on the verge of concluding and announcing a huge semiconductor fab in Dholera, Gujarat, and we are about to complete the negotiations and start in 2024,” stated Tata Sons Chairman Natarajan Chandrasekaran.
Similarly, South Korea-based semiconductor critical parts maker Simmtech has also signed a Memorandum of Understanding (MoU) with the Gujarat government to invest over `1,250 crore in the state.
The company will set up operations to support Micron’s semiconductor plant in Gujarat.
Meanwhile, US chipmaker Micron Technology had announced plans to set up a semiconductor assembly and test plant in Gujarat entailing a total investment of $2.75 billion (around Rs 22,540 crore) in 2023, and has already started constructing sites and hiring personnel.
Speaking at the event, Union telecom minister Ashwini Vaishnaw said the semiconductor industry will require a million workers over the next 10 years.
India has earmarked $10 billion incentive for setting up a semiconductor manufacturing ecosystem in the country. The Ministry of Electronics and Information Technology has so far received 45 applications under the Programme for Development of Semiconductors and Display Manufacturing Ecosystem.
The past year witnessed a slew of announcements and MoUs, bringing India closer to its pursuit of becoming a semiconductor hub in the next few years.
At the Semicon India summit held in Ahmedabad, US chip maker AMD also pledged a substantial investment of $400 million in Bengaluru.
In India, Micron Technology stands out as a significant name in packaging, while others such as Vedanta and Taiwanese electronic manufacturer Foxconn, aspiring to start fab units, lack experience.
Therefore, the key question remains: when will India start producing domestically-made chips?
Given the complexity of semiconductor manufacturing and the ecosystem it demands, year 2024 will be a successful year for India if key players join the industry. For India to have a successful 2024 in the semiconductor industry, we need big and serious players to invest. It is essential to remember that it took countries like Taiwan many decades to become major players in making vital chips for electronic devices.