At the Vibrant Gujarat Summit 2024, Tata Group announces plans for a semiconductor unit in Dholera by 2024, while Adani Group commits a staggering $24 billion to boost green energy initiatives in the state. Other notable investments come from Maruti Suzuki, Simmtech, and DP World, signaling Gujarat’s growing prominence as a preferred destination for diverse investments, especially in the semiconductor and green energy sectors.
AT A GLANCE
- Semiconductor Boost: Tata Group plans a major semiconductor fabrication unit in Gujarat’s Dholera, starting operations in 2024.
- Green Energy Push: Adani Group commits a massive ₹2 trillion ($24 billion) for green energy initiatives in Gujarat during the Vibrant Gujarat Summit.
- Multi-Billion Investments: Maruti Suzuki, Simmtech, and DP World reveal substantial investment plans, solidifying Gujarat’s position as an investment hub.
- Micron’s Milestone: Micron Technology establishes the first chip manufacturing unit in India, investing Rs 2.75 billion in Gujarat.
- Job Opportunities: Simmtech announces plans to establish a chip component plant, creating thousands of job opportunities in Gujarat.
- Government Support: The central and state government actively support semiconductor investments, with PM Modi offering 50% financial assistance to firms setting up facilities in India.
- Semiconductor Policy: Gujarat stands out as the only state with a dedicated semiconductor policy (2022-27), offering incentives and schemes to attract semiconductor companies.
Ahmedabad, January 11, 2024
The 10th edition of the Vibrant Gujarat Global Summit kicked off on January 10, showcasing a flurry of investment pledges and significant announcements from key players across various sectors. The summit, a two-day event, witnessed major players like Tata Group, Adani Group, Maruti Suzuki, Simmtech, and DP World stepping forward with substantial investment plans.
Tata Group’s Semiconductor Fabrication Unit in Dholera
Tata Group, under the leadership of Chairman N Chandrasekaran, unveiled plans to establish a substantial semiconductor fabrication unit in Dholera, Gujarat. The proposed unit is set to commence operations in 2024, contributing to India’s semiconductor ecosystem.
During the summit, Natarajan Chandrasekaran, Chairman of Tata Sons, said, “The Tata Group has also made a commitment and is on the verge of concluding and announcing a huge semiconductor fabrication in Dholera, and we are about to complete this negotiation and start in 2024.”
This move aligns with the global trend as US-based semiconductor firm Micron Technology is already in the process of setting up its chip manufacturing unit in Gujarat, making it the first of its kind in the country. With an investment of Rs 2.75 billion, Micron’s venture into chip manufacturing in India is seen as a pivotal development.
Micron Technology’s Chip Manufacturing Unit
Sanjay Mehrotra, CEO of Micron Technology, expressed pride in the progress of their venture during his address at the summit. “I am proud that in June we announced memory assembly and test in Gujarat, first of its kind in India. I thank the state officials for making it possible. We have begun building a world class facility. I visited it yesterday and it is coming up nicely,” Mehrotra said in the summit.
Furthermore, Simmtech, a South Korean firm, announced plans to establish a chip component plant to complement Micron’s semiconductor testing and packaging facility. Jeffery Chun, the global CEO of Simmtech, emphasized the company’s readiness to make a significant investment in India, creating numerous job opportunities for highly skilled talents in Gujarat.
“We are now preparing for another round of colocation investment in India following Micron’s investment plan in Gujarat and I am very pleased to share the progress with the audience today that with the support from the central and state government, we are ready to make a significant investment in India and create thousands of job opportunities for high skilled talents in Gujarat,” said Jeffery Chun, global CEO, Simmtech
Government Initiatives and Support
The central and state governments have been actively working to attract semiconductor chip manufacturers to India. In July of the previous year, Prime Minister Narendra Modi offered 50% financial assistance to such firms for setting up their facilities in the country. This initiative was announced during the “Semicon India 2023” conference held in Gandhinagar, reflecting the government’s commitment to fostering the semiconductor industry.
Gujarat stands out as the only state with a dedicated semiconductor policy for the period 2022-2027. This policy includes incentives and specific schemes aimed at attracting semiconductor firms to establish and flourish within the state.
Adani Group’s Green Energy Boost
Apart from Tata Group’s semiconductor venture, the Adani Group made headlines by committing a staggering ₹2 trillion ($24 billion) to enhance green energy initiatives in Gujarat. This substantial investment adds to the growing list of multi-billion pledges made during the summit.
Adani Group’s ambitious investment aligns with the global push towards sustainable and eco-friendly practices. The commitment of such a significant amount underscores the potential for Gujarat to become a major hub for green energy initiatives.
Maruti Suzuki, Simmtech, and DP World’s Investment Plans
In addition to Tata Group and Adani Group, other major players also stepped forward with their investment plans during the Vibrant Gujarat Summit. Maruti Suzuki, a key player in the automotive industry, highlighted its commitment to Gujarat’s growing stature as an investment hub.
Simmtech, the South Korean firm mentioned earlier in the context of semiconductor investments, emphasized its plans to establish a chip component plant to complement Micron’s activities. Jeffery Chun, Simmtech’s global CEO, expressed gratitude for the support from both the central and state governments, signaling the company’s readiness for significant investments in India.
DP World, a global logistics and port operator, added to the investment momentum by revealing its own plans during the summit. The specifics of DP World’s investment were not detailed in the available information, but the company’s participation adds diversity to the sectors receiving attention and investment in Gujarat.
In conclusion, the 10th Vibrant Gujarat Global Summit showcased a surge in investments across various sectors, solidifying the state’s reputation as a burgeoning investment hub. The commitments from Tata Group, Adani Group, Maruti Suzuki, Simmtech, and DP World underscore the diverse opportunities and sectors gaining traction in Gujarat.
With the semiconductor industry gaining momentum in the state, supported by government initiatives and policies, Gujarat is poised to play a pivotal role in India’s technological advancement. The substantial investments in green energy further align with global trends, positioning Gujarat as a key player in the sustainable development landscape.
As these plans unfold and projects materialize, the summit’s outcomes are expected to contribute significantly to Gujarat’s economic growth and job creation, setting a positive trajectory for the state’s future as an attractive destination for investments across industries.
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Source(s): Deccan Herald; Reuters
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