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


In order to make Gujarat India’s semiconductor hub, the Gujarat government has given 188 acres of land for Tata Group and its subsidiary CG Power.

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.

According to Business Standard, CG Power has been given 28 acres in Sanand to start its Rs 7,600 crore ATMP project. The report stated that both projects will have a ground-breaking ceremony on March 13 and will attract senior politicians and government officials.

On February 29 Tata Sons wholly owned subsidiary Tata Electronics said it has joined forces with Powerchip Semiconductors Manufacturing Corporation (PSMC) to establish India’s first AI-enabled Semiconductor fabrication facility (fab) at Dholera. The project is anticipated to produce over 20,000 direct and indirect skilled jobs in the area.

The semiconductor factory is able to produce up to 50 000 wafers monthly. A wafer is a small, round slice of semiconductor material, typically germanium or silica, used as the foundation for the making chips. The Dholera will have next-generation factory automation features that utilize data analytics and machine learning for maximum factory efficiency.

The facility will produce chips for various uses, including power management IC, display drivers, microcontrollers, along with high performance computing logic, to meet the increasing demand of markets including automotive, computing and data storage, artificial intelligence and wireless communication.

Murugappa Group firm CG Power and Industrial Solutions is another significant player on the Gujarat chip landscape. On March 1 the company entered into an agreement with two foreign entities – Renesas (Japan) and Stars (Taiwan) – to establish an outsourcing facility for semiconductor assembly and testing 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 focus on 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.

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