Gujarat's chip drive: Tata Group, CG Power get 188 acres for semiconductor plants, says report

These plants are in addition to a Rs 22,516-crore chip assembly plant being set up by US-based memory chip maker Micron.

The Gujarat government has allotted 188 acres of land to Tata Group and CG Power as part of its ambition to make the state India's semiconductor hub.

The state government has earmarked around 160 acres in Dholera for Tata Group to set up the country's first mega semiconductor fabrication plant at an estimated investment of Rs 91,000 crore.

CG Power, which is embarking on a Rs 7,600-crore ATMP plant, has been offered 28 acres in Sanand, according to a Business Standard report. The ground-breaking ceremony for both projects is scheduled for March 13 and will attract senior politicians and government officials, the report said.

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Tata Electronics, a wholly owned subsidiary of Tata Sons, announced on February 29 that it has formed a partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) to build India's first AI-enabled semiconductor fabrication facility, commonly called 'fab', in Dholera. The project is expected to create over 20,000 direct and indirect skill-based jobs in the region.

The semiconductor fab will have a manufacturing capacity of up to 50,000 wafers per month. A wafer is a thin, round slice of semiconductor material, typically germanium or silicon, used as the foundation for the making chips. The Dholera will include next-generation factory automation capabilities, deploying data analytics and machine learning to achieve industry-best factory efficiency.

The facility will manufacture chips for a range of applications, including power management IC, display drivers, 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.

The other major player on the Gujarat chip turf is CG Power and Industrial Solutions, a Murugappa Group company. The company signed an agreement on March 1 with two foreign entities, Renesas and Stars Microelectronics, to set up an outsourced semiconductor assembly and testing facility in Sanand. The JV will manufacture a wide range of products, ranging from legacy packages such as QFN and QFP to advanced packages such as FC BGA, and FC CSP. It will cater to automotive, consumer, industrial, and 5G technologies.

The Tata Group and CG Power plants join a Rs 22,516-crore chip assembly plant being set up by the US-based memory chip maker Micron in Sanand.