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three chip plants groundbreaking: Groundbreaking for three semiconductor plants likely next week


Groundbreaking ceremonies for three semiconductor projects, including two from the Tata Group, are likely to be held next week, less than two weeks after the Union Cabinet cleared the proposals entailing investments of $15.14 billion, officials told ET.

The projects include an $11 billion semiconductor fab facility, the country’s first, to be built by the Tata Group in at Dholera in Gujarat. The other unit proposed by the conglomerate involves a Rs 27,000 crore chip assembly, testing, marking and packaging facility at Morigaon in Assam. Murugappa Group’s CG Power will be setting up a chip assembly facility at Sanand in Gujarat at a cost of Rs 7,600 crore.

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Construction of the plants is likely to begin in 60-70 days.

Chief ministers, union ministers, key government officials and top executives from the companies are likely to be present at the events, the officials said.

The Tata Group has tied up with Taiwan’s Powerchip Semiconductor Corp to set up the semiconductor fabrication unit in Gujarat. Japan’s Renesas and Thailand’s Stars Microelectronics are CG Power’s partners in the Sanand project.

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Union IT and electronics minister Ashwini Vaishnaw told ET last week that all clearances and land allocation for the semiconductor plants were being fast tracked.

“The land bank has already been identified and demarcated (at all three places). The (land) allocation should happen in a few days. The permits are all lined up,” Vaishnaw said.

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Vaishnaw said that the four semiconductor plants — the fourth being a facility proposed by US-based Micron, also at Sanand — which have got approval so far will galvanise further investment into the country, catapulting it into one of the top five semiconductor nations in the next five years. “The focus now has to be on execution,” he added.

While a majority of the permits for the construction of the Assam factory, and some for residential units to house workers and executives who will supervise the construction, have been given, other routine approvals are likely to be cleared after the groundbreaking ceremony, an official said.

“Other permits and environmental clearances will be needed and issued as per the protocol when the need arises,” this official added.

Cumulatively, the three projects approved on March 1 involve investments of Rs 126,000 crore ($15.14 billion), of which Rs 47,704 crore would be footed by the central government in terms of subsidies under the Rs 76,000 crore India Semiconductor Mission. These projects are expected to create 26,000 advanced technology jobs and 100,000 indirect jobs.


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