Gujarat has introduced a dedicated policy for the semiconductor sector, with Chief Minister Bhupendra Patel announcing that chip manufacturing will soon begin in the state. This announcement came during the 'Gujarat SemiConnect Conference 2024' held at the Mahatma Mandir convention centre. The event, which explored various aspects of the semiconductor industry, saw participation from key players like Micron Technology, Tata Electronics, and CG Power, who are currently establishing their semiconductor plants in Gujarat and have collaborated with the state as knowledge partners.

Semiconductors, or microchips, are critical components in a wide range of electronic devices, supporting sectors such as communication, healthcare, military, transportation, and clean energy. Patel reassured potential investors of the government’s commitment to support chip manufacturing in Gujarat, highlighting that the state is the first in India to implement a dedicated semiconductor policy.

He noted that after the policy was introduced in 2020, Micron Technology decided to set up a chip manufacturing facility in Gujarat, quickly securing land at Sanand. The CM emphasized that Gujarat offers “plug-and-play” facilities at the Dholera Special Investment Region (SIR), where Tata Electronics, in partnership with Taiwan's Powerchip Semiconductor Manufacturing Co, is establishing India’s first commercial semiconductor fabrication facility.

CG Power is also set to create an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand. Patel expressed confidence that chip manufacturing would commence soon and mentioned efforts to develop a skilled workforce for the sector.

During the conference, leaders from Micron, Tata Electronics, and CG Power highlighted the need for improved infrastructure, including better rail and road connectivity near the Dholera and Sanand sites, where the semiconductor units are being developed. Mona Khandhar, principal secretary in the Department of Science and Technology, reported that the three chipmakers are on track to start operations in Gujarat.

Khandhar explained that Micron has activated temporary facilities, with a state-of-the-art Assembly, Testing, Marking, and Packing (ATMP) facility worth ₹22,500 crore expected to be commissioned early next year at Sanand. Tata Electronics, alongside PSMC Taiwan, plans to invest ₹91,000 crore in semiconductor facilities at Dholera, aiming to commence operations by 2026. Meanwhile, CG Power, in partnership with Japan’s Renesas, is preparing to launch an OSAT facility valued at ₹7,600 crore in Sanand, projected to be operational by 2025.

Gursharan Singh, senior vice president at Micron Technology, emphasized the necessity for robust infrastructure to support the semiconductor industry. For India to establish itself as a semiconductor powerhouse, he stressed the importance of reliable power supply and consistent clean water availability at the semiconductor companies’ sites.

The concerted efforts of the Gujarat government and industry leaders aim to position the state as a significant player in the global semiconductor market, fostering innovation and development in this critical sector.