Gandhinagar: Union Minister of Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw, attributed the significant presence of a large chemical cluster in Dahej as one of the key factors driving major semiconductor investments in the region.

On Wednesday, there Prime Minister Narendra Modi laid the foundation stone for three semiconductor projects – one fab and two ATMP units which were approved by Union Cabinet on February 29th. Out of these, two are located in Gujarat.

Tata Electronics Private Limited, and Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan, is setting up a semiconductor fab in Dholera with an investment of ₹91,000 crore. Meanwhile, CG Power, in partnership with Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand, is to establish a semiconductor unit in Sanand, with an investment of ₹7,600 crore. Other than these two, Micron is also setting up a semiconductor unit in Sanand with construction progressing rapidly.

So, when asked about the rationale behind the surge in semiconductor investment in the north, the Union Minister states that the semiconductor industry demands nearly 250 specialty gases and chemicals. The presence of a large chemical cluster in Dahej can cater to the requirements of the semiconductor industry, making the region highly attractive for investment. This explains the inclination towards a location where the chemical industry is already established, added the Minister.

The cumulative ecosystem of the four approved projects totals nearly ₹1.60 lakh crore, marking just the initial phase. The minister expressed anticipation of witnessing four or five additional fabs and more assembly, testing, marking, and packaging (ATMP) units within the next five years, as he addressed reporters after inaugurating Qualcomm’s Chennai Design Centre.

The Government of India’s Semiconductor Mission aims to establish the complete semiconductor value chain in India, encompassing design, fabrication, and ATMP. Moreover, India boasts a talented workforce, various types of gases, and semiconductor equipment.

Having a robust semiconductor value chain, ecosystem, and skilled workforce is crucial for the advancement of a nation. Semiconductor technology serves as the gateway to numerous industries such as automotive, computing, telecommunications, consumer electronics, and transportation. Virtually every device that operates by switching on or off relies on semiconductors. Establishing this value chain in India is of utmost importance, he further explained. DeshGujarat