Tata group seeks 80 acres more to expand Dholera semiconductor chip plant

Gujarat govt had earlier allocated 20-acre land parcel to conglomerate

The Tata group has sought 80 acres of land from the Gujarat government for expansion of its under-construction semiconductor chip fabrication plant in Dholera, according to sources in the know.

 

The new land parcel will be in continuation of the old 20-acre land where the chip fabrication plant stands. Tata Electronics, a subsidiary of the Tata group, is also likely to use the additional land parcel to construct housing facilities to accommodate nearly 3,000-3,500 employees, an official said.

 

“The land parcel is for mixed use development. There will be nearly 3,000 studio-apartment style housing units for employees of not just TEPL (Tata Electronics Private Limited) but also for the employees of the raw material suppliers of the chip fabrication unit,” the official said.

 

A large shopping complex with facilities for entertainment and dining, a separate dining facility with options for expatriates, a sports arena and other utilities are expected to be added over time.

 

In addition to these 100 acres, the government of Gujarat has provided a letter of support to provide another 63 acres to TEPL in Dholera for construction and proposed expansion of other facilities as and when required, one of the officials quoted above said.

 

TEPL did not respond to e-mailed queries on the development.

 

The Tata group’s Dholera semiconductor unit is the first chip fabrication facility in India to be approved by the central government on February 29, 2024, under the ambitious India Semiconductor Mission (ISM). The plant is expected to start operations by 2027 and may employ close to 2,000 people.

 

The chip fabrication unit in Dholera is coming up at a cost of more than

 

₹91,000 crore. The land parcel, which has been allocated to TEPL, has been valued at nearly ₹200 crore, while around ₹15,710 crore is likely to be spent on the construction of the chip fabrication unit, the facilities and utilities, as well as information technology infrastructure.

 

The ₹76,000 crore ISM incentive plan, which aimed to kickstart semiconductor chip manufacturing and packaging in the country has tasted success and so far seen five applications being approved. Four of these ISM approved projects are chip packaging units, while TEPL is the sole chip fabrication unit so far. 

Number plate

 

> Total proposed investment: ₹91, 526 crore

> Likely direct employment to be generated: 1,900-2,000

> Total proposed land allocated: 163 acres

> Estimated capacity: 50 wafer starts per month

> Nodes: 110, 90, 55, 40, and 28 nm