Gandhinagar, Jul 19 (PTI) Gujarat has rolled out a dedicated policy for the semiconductor sector and chip manufacturing will commence soon in the state, Chief Minister Bhupendra Patel said on Friday, assuring that his government will provide necessary assistance to the industry.
Patel was speaking after inaugurating the daylong ‘Gujarat SemiConnect Conference 2024’, covering various avenues of the semiconductor sector, at the Mahatma Mandir convention centre here.
Micron Technology, Tata Electronics and CG Power, which are building their semiconductor plants in Gujarat, have collaborated with the state government as knowledge partners for the conference.
Semiconductors, also referred to as integrated circuits or microchips, are an essential component of electronic devices, facilitating communications, military systems, healthcare, computing, transportation, clean energy, and several other applications.
In his address, the chief minister assured those keen to invest in the sector that his government would provide all necessary assistance for chip manufacturing facilities in the state.
“Gujarat is the first Indian state to have implemented a dedicated policy for the semiconductor sector. Within a few months of its implementation in 2020, Micron Technology decided to set up a chip manufacturing plant in Gujarat. We allotted them land at Sanand in just one week,” he said.
The CM said Gujarat offers “plug-and-play” facilities at the Dholera Special Investment Region (SIR) for the semiconductor players.
“Taking advantage of this facility, Tata Electronics and its partner, Taiwan’s Powerchip Semiconductor Manufacturing Co, are establishing the country’s first commercial semiconductor fab (fabrication facility) at Dholera SIR,” he said.
He said CG Power is also establishing an OSAT (Outsourced Semiconductor Assembly and Test) facility at Sanand.
“I am confident chip manufacturing will commence soon in Gujarat. We are also working on creating manpower for this sector,” the CM said.
In their addresses, top leaders from Micron Technology, Tata Electronics and CG Power stressed the need for the development of infrastructure, rail and road connectivity and other such facilities near Dholera and Sanand where semiconductor units are coming.
Mona Khandhar, principal secretary in the state’s Department of Science and Technology, informed the audience that the three chipmakers are on course to start their operations in the state.
“Micron has already activated its temporary facilities and its state-of-the-art ATMP (Assembly, Testing, Marking, and Packing) facility worth Rs 22,500 crore is on the way to get commissioned early next year at Sanand,” said the senior IAS officer.
Tata Electronics in partnership with PSMC Taiwan is all set to set up semicon facilities worth Rs 91,000 crore at Dholera and will begin operations by 2026, she said.
“CG power in partnership with Renesas, Japan, has geared up to set OSAT facility worth Rs 7,600 crore at Sanand to be commissioned by 2025,” she added.
In his address, Gursharan Singh, senior vice president at Micron Technology, stressed the need for robust infrastructure and other facilities for the semiconductor sector.
“While our primary facility in Sanand is under construction, I am pleased to share that technology transfer, line and product qualification at our mini facility in Sanand is progressing on schedule,” he said.
For India to become a semiconductor nation, it is imperative that power supply remains uninterrupted and consistent and that clean water supply is ensured right at the doorsteps of semiconductor companies, said Singh.
“Equally critical is the development of civic infrastructure in Sanand. (There is a need for) dormitories and housing options for employees, especially for new college graduates and single employees. High-speed rail connectivity, bump-free roads, public transport, luxury hotels, international schools and hospitals, all adjacent to the cluster in Sanand and Dholera (are needed),” he said.
Singh also stressed that direct flights between Ahmedabad and semiconductor nations like Taiwan, South Korea and Japan are essential to facilitating new investments, knowledge sharing and collaboration with overseas partners.
Arun Murugappan, chairman of Tube Investments, also talked about the need for infrastructure and facilities similar to that of Taiwan. CG Power and Industrial Solutions is part of Tube Investments of India Limited.
“To ensure India’s success in semiconductors, it is crucial to establish a semiconductor cluster similar to the one in Taiwan, having a robust infrastructure including power, water, and connectivity while fostering the co-location of raw material suppliers, equipment suppliers, research institutions, universities and supporting industry,” he said.
Randhir Thakur, CEO and MD of Tata Electronics Private Limited, said the company has committed to invest $11 billion towards its semiconductor fab project in Dholera, which he said will generate over 20,000 jobs.
“This semiconductor fab project in Dholera will bring more than 2,000 ecosystem partners and suppliers, and a few of them have already started working with us. As we build India's first greenfield AI-enabled fab, a key focus for us will be on promoting local industry,” he said.