Gujarat allots Tata Group, CG Power land to set up semiconductor plants

To set up the country’s first mega semiconductor fabrication plant, it is reported that the Tata group has been allotted about 160 acres in Gujarat’s Dholera, with an investment of Rs 91,000 crore. CG Power has also been given an offer-cum-allotment (OCA) of 28 acres in Sanand for its ATMP (assembly, testing, marking and packaging) plant, which will be built with an investment of Rs 7,600 crore.

The ceremony of ground-breaking for both the projects has been scheduled on March 13 and will attract senior politicians and government officials, as per report.

The Union Cabinet on February 29 has approved the setting up of the country’s first semiconductor fab by the Tata Group in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC).

A net investment of Rs 91,000 Crore will go into the fab.

The Cabinet also nodded for two other semiconductor proposals. In Assam, the Tata Semiconductor Assembly and Test (TSAT) will establish a chip assembly and testing unit with an investment of Rs 27,000 Crore.

The CG Power and Japan’s Renesas will also come up with a semiconductor plant in Sanand in Gujarat with an estimated investment of Rs 7,600 Crore. The plant will manufacture 15 million chips a day.

Together, the three projects will attract an investment of Rs 1.26 Lakh Crore construction at the three plants will commence within the next 100 days.

It is pertinent to note that the Indian government has taken a number of steps to develop the semiconductor ecosystem to make the country self-reliant. As part of this, it approved the Semicon India programme with an outlay of Rs 76,000 Crore to develop the semiconductor and display manufacturing ecosystem.