"Dahej Emerges as Key Driver for Significant Semiconductor Investments in Gujarat"

Ashwini Vaishnaw, Union Minister of Railways, Communications, Electronics & Information Technology, highlighted the significant role played by Dahej's expansive chemical cluster on the southwest coast of Gujarat in driving substantial semiconductor investments in the region.

Following the Union Cabinet's approval on February 29, three semiconductor units are set to be established under the initiative 'Development of Semiconductors and Display Manufacturing Ecosystems in India,' with construction slated to commence within the next 100 days.

In June 2023, the Union Cabinet greenlit Micron's proposal for a semiconductor unit in Sanand, Gujarat. Additionally, Tata Electronics Private Limited will partner with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, to establish a semiconductor fab in Dholera, Gujarat, with an investment of ₹91,000 crore. CG Power, in collaboration with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will establish a semiconductor unit in Sanand, Gujarat, with an investment of ₹7,600 crore.

Furthermore, Tata Semiconductor Assembly and Test Pvt Ltd will set up a semiconductor unit in Morigaon, Assam, with an investment of ₹27,000 crore.

The minister emphasized that nearly 250 specialty gases and chemicals required for semiconductor manufacturing are available in the large chemical cluster at Dahej, fulfilling the demands of the semiconductor industry. This factor has significantly contributed to the industry's confidence in the region.

The cumulative ecosystem in the four approved projects amounts to nearly ₹1.60 lakh crore, marking just the beginning of further developments. Vaishnaw anticipates the establishment of four or five additional fabs and more assembly, testing, marking, and packaging (ATMP) units in the next five years.

Highlighting the semiconductor industry's critical importance for the country, Vaishnaw revealed that at least eight more states are earnestly working on future semiconductor projects. The Government of India's Semiconductor Mission aims to establish the entire value chain of semiconductors in India, encompassing design, fabrication, and ATMP, supported by a robust talent pool and requisite infrastructure.

Prime Minister Narendra Modi recently laid the foundation stone for three projects, including one fab and two ATMP units, further underscoring India's commitment to advancing its semiconductor capabilities.

HBL