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Vibrant Gujarat Global Summit: Tata Group to make chips in Gujarat

The Tata Group's investment in Gujarat's Dholera aligns with Prime Minister Narendra Modi's push to bolster the nation's chip manufacturing capabilities.

Tata Wistron

India’s industrial giant Tata Sons, under the leadership of Chairman N. Chandrasekaran, announced plans to establish a semiconductor fabrication plant in Gujarat’s Dholera. “We are about to complete negotiations and start in 2024,” Chandrasekaran said at the Vibrant Gujarat Global Summit, and as reported by The Economic Times.

The Tata Group’s investment in Gujarat’s Dholera aligns with Prime Minister Narendra Modi’s push to bolster the nation’s chip manufacturing capabilities. This effort is a part of a broader initiative to offer substantial incentives to the chipmaking industry, aiming to solidify India’s position in the global technology market.

In addition to the semiconductor fab, the Tata juggernaut is also set to begin the construction of a 20-gigawatt-hour lithium-ion battery gigafactory in Sanand, Gujarat. This project is pivotal for India’s electric vehicle (EV) market, as it will contribute significantly to the domestic EV supply chain and cater to the increasing demand for electric vehicles.

“Sanand is becoming home for our EV tech. We expanded capacity to meet growing demand for EVs,” Tata Group’s Chandrasekaran said. With Tata Motors aiming for 50% of its portfolio to be electric by 2030, the Gujarat facilities will play a pivotal role in powering this green ambition.

Furthermore, the Indian conglomerate, in partnership with the Union government and the Gujarat government, plans to launch a skill development institute. This institute will be instrumental in training over 25,000 professionals annually, focusing on advanced manufacturing of electric vehicles and electronics. The initiative is set to commence in March 2024.

Meanwhile, the Tata foray complements other recent investments in Gujarat’s chip scene. Micron, a tech giant, is setting up an assembly and test facility, while South Korea’s Simmtech plans a chip component plant. India’s metals-to-oil conglomerate Vedanta is awaiting the government’s nod to commence work on its semiconductor plant in the western Indian state of Gujarat.

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