Cover Story | March 14, 2024 | 11 min read PM Modi launches Gujarat’s TECH age

Ahmedabad Cover Story

PM Modi launches Gujarat’s TECH age

Lays foundation for 2 more semiconductor plants in Gujarat: Tata Electronics’ Rs 91,000 crore fab in Dholera and CG Power’s Rs 7,500 crore OSAT facility in Sanand

Ahmedabad Mirror

Mar 14, 2024 06:00 AM | UPDATED: Mar 14, 2024 02:39 AM | 11 min read

Paving the way for the country to join the ranks of select chip-producing nations, Prime Minister Narendra Modi on Wednesday laid the foundation stones of three semiconductor fabrication plants, two in Gujarat and one in Assam.

Being built at a cost of Rs 1.25 lakh crore, the plants, together with Micron’s under-construction unit in Sanand, will help cut India’s dependence on countries like Vietnam for the growing requirement of semiconductors. 

The projects for which foundation was laid include Tata Group’s Rs 91,000 crore plant at Dholera to make 50,000 wafers per month and Rs 7,600 crore facility of Murugappa Group’s CG Power at Sanand.

Chip roll out
While the first India-made chip, manufactured by Micron, is slated to roll out from Sanand in December this year, the indigenous semiconductors from the Tata Group would start rolling out from December 2026. “The day is not far when India will become a global power in the manufacture of products for the semiconductor sector,” PM Modi said on the future plans where India is primed to take on commercial production for the semiconductor sector.

The partnership
Tata Electronics Pvt Ltd will set up the semiconductor fab in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp at Dholera.

According to Communications and IT Minister Ashwini Vaishnaw, the plants in Gujarat will make chips for sectors, including defence, automobiles and telecommunications. Emphasising that semiconductor is a ‘foundational’ industry touching almost every aspect of life — powering everything from fridge to ACs to aircraft, Vaishnaw said Tata’s Dholera plant will make chips in 28, 50, 55 nanometer nodes.
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CG Power, in partnership with Renesas Electronics Corp and Stars Microelectronics of Thailand, will set up a unit in Sanand. Renesas is a leading semiconductor company focussed on specialised chips. Its joint venture plant with CG Power will have a capacity for 15 million chips per day, and will manufacture chips for consumer, industrial, automotive and power applications.

Chip applications
Tata Sons Chairman N Chandrasekaran said the Tata Electronics’ semiconductor projects will initially create 50,000 direct and indirect jobs. The new semiconductor Fab will manufacture chips for applications such as power management IC, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as automotive, computing and data storage, wireless communication and artificial intelligence.

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