Dahej: Major reason for large semiconductor investments in Gujarat

Subject: Geography

Section: Economy geography

Context:

Ashwini Vaishnaw, the Union Minister of Railways, Communications, and Electronics & Information Technology, highlighted the significant influence of Dahej’s large chemical cluster on attracting major semiconductor investments to Gujarat’s South-west coast.

Details:

The Union Cabinet sanctioned the creation of three semiconductor units as part of the initiative to develop the semiconductor and display manufacturing ecosystems in India, with construction set to commence within 100 days of approval.
In June 2023, Micron received approval to establish a semiconductor unit in Sanand, Gujarat.
Tata Electronics, in collaboration with Powerchip Semiconductor Manufacturing Corp (PSMC) from Taiwan, plans to build a semiconductor fab in Dholera, Gujarat, investing ₹91,000 crore. Additionally, CG Power will collaborate with Renesas Electronics Corporation from Japan and Stars Microelectronics from Thailand to create a semiconductor facility in Sanand, Gujarat, with a ₹7,600 crore investment. Tata Semiconductor Assembly and Test Pvt Ltd is also set to establish a semiconductor unit in Morigaon, Assam, with an investment of ₹27,000 crore.

Semiconductor manufacturing:

The semiconductor manufacturing process requires nearly 250 speciality gases and chemicals, which the Dahej chemical cluster can provide, making it an attractive location for semiconductor investments.
This has led to a strategic gravitation towards areas with established chemical industries. The expectations are for the addition of more fabrication plants and assembly, testing, marking, and packaging (ATMP) units within the next five years.
The government’s Semiconductor Mission aims to establish a comprehensive semiconductor value chain in India, encompassing design, fabrication, ATMP, and leveraging the country’s talent pool and resources.
The inauguration of Qualcomm’s Chennai Design Centre marks a significant step in completing the semiconductor ecosystem and value chain in India.
Emphasizing the importance of advancing beyond 2G to lead in 5G and 6G technologies, the role of Tamil Nadu as a talent hub and the Qualcomm Design Centre’s contribution to semiconductor design is immense.

Dahej industrial cluster:

Located in the Bharuch district of Gujarat and spread over 76.30 sq. km., Dahej has potential for new MSMEs for sectors like agro, livestock, forest and demand-based industries.
The major exportable items include dyes intermediate and chemicals, bulk drugs and pharmaceuticals. Lignite, silica and ball clay are the major minerals and black trap, sand, hard murrum and gravel are the minor minerals found in Dahej.

Source: TH