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Tata begins training employees for Gujarat chip plant

26th Sept 2024 Source by https://www.hindustantimes.com/

Tata Electronics has partnered with Taiwan’s chip major Powerchip Semiconductor Manufacturing Corporation to build the fab at Dholera Special Investment Region.

Tata Electronics has begun training employees in Taiwan for its $11-billion semiconductor fabrication facility in Gujarat, with more batches set to travel to the island from next month, people familiar with the matter said on Wednesday.

Tata Electronics, a wholly owned subsidiary of Tata Sons, has partnered with one of Taiwan’s chip majors, Powerchip Semiconductor Manufacturing Corporation (PSMC), to build the fab at Dholera Special Investment Region. The first chip is expected to roll out from the facility by the end of 2026.

The first batch of Tata Electronics employees currently being trained by PSMC are Indian nationals living in Taiwan who were recently hired by Tata Electronics, two people familiar with the development said on condition of anonymity. More batches of Tata Electronics employees from India are expected to join them from October, they said. An external spokesperson of Tata Group, responding to an email query, declined to comment on the development. An Indian official aware of the development, requesting anonymity, said the venture between Tata Electronics and PSMC is a significant industrial development to make India future ready.

“The Taiwanese firm has the required technology and Tata Group has the requisite IT exposure. The two are an ideal fit for high value manufacturing, which requires specific training of the local workforce in batches. The government is committed to support such requirements with necessary regulatory approvals,” the official said, declining to give company-specific information.

Tata Group plans to train thousands, including on-the job training and upgrading of skills, and visas for this purpose won’t be an issue, the official added. On February 29, the government approved Tata Electronics’ proposal to build the fab in Dholera, a significant move under the “Make in India, for the world” campaign.

India has wooed Taiwan’s chip majors, including Taiwan Semiconductor Manufacturing Company (TSMC) and PSMC, and smaller firms that play a key role in semiconductor supply chains as part of New Delhi’s ambitious plans to become a leading player in manufacturing chips needed for both consumer products and sensitive security equipment.

The two people cited above said Tata Electronics has hired a few employees of TSMC for its venture in Dholera in order to build up the management needed for the crucial project.

Before groundbreaking was done in Dholera in March, PSMC chairman Frank Huang said the venture will involve transfer of technology and will begin with 28 nanometer (nm) chips.

Tata Group has said the AI-enabled fab will be capable of making up to 50,000 wafers a month. It will manufacture chips for applications such as power management IC, display drivers, microcontrollers and high-performance computing logic to meet the needs of sectors such as automotive, computing and data storage, wireless communications and artificial intelligence.

The Indian official cited above said: “The project has the government’s blessings as India wants to become self-reliant in chip manufacturing, a component necessary for all futuristic industrial developments.”

At the same time, the Taiwanese side has pushed Tata Group to get Air India to launch direct flights to Taipei as part of steps to improve connectivity and boost trade and investments, the people cited above said. There are currently no direct flights between the two sides and Taiwan’s airlines such as China Airlines and EVA Air don’t have the capability to start flights to New Delhi, they said.

India’s external affairs ministry and Taiwan’s labour ministry are also finalising arrangements for the first batch of Indian workers to be sent to the island early in 2025 under the memorandum of understanding (MoU) on migration and mobility signed in February this year, the people said.

This group is expected to comprise workers for the construction and manufacturing sectors, and the number of workers is yet to be finalised, they said. Taiwan could hire up to 100,000 Indians to work in factories, farms and hospitals.

India and Taiwan don’t have formal diplomatic relations, though both established representative offices in each other’s capitals in 1995. Besides the Taipei Economic and Cultural Center in New Delhi, Taiwan set up an office in Chennai in December 2012 and has plans to enhance its presence in the country by setting up a new office in Mumbai.

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ISTS Scheme Planned To Feed Dholera Investment Region In Gujarat

30th August 2024 Source by https://www.tndindia.com/

A new interstate transmission system (ISTS) scheme is in the making, aimed at providing redundant ISTS power supply to upcoming manufacturing units in the Dholera Special Investment Region (SIR) in Gujarat.

The proposed transmission scheme will be a second power source, in addition to the 220/33kV Dholera substation along with the 400kV double-circuit Panchham—Dholera line already established by state transmission utility Gujarat Energy Transmission Corporation Ltd (GETCO). Under the new scheme, around 150-200 MW of power will be drawn from the upcoming ISTS Vataman substation and fed to GETCO’s new substation at Dholera (called Dholera-2), which is 30-35 km from Vataman. It may be mentioned that the 765kV Vataman switching substation is being implemented as part of an ISTS scheme developed by Vataman Transmission Ltd, a wholly-owned subsidiary of Power Grid Corporation of India Ltd (PGCIL). The Vataman substation is envisaged for completion by December 2025 and GETCO is seeking ISTS connectivity to its Dholera-2 substation by January 2026.

Two-Pronged Project

The proposed ISTS scheme, to be known as “Transmission system to provide redundant power supply to Dholera area” will have two components. Under the first, some elements that are already envisaged under another ISTS scheme “Transmission system for offshore wind in Gujarat,” will be transferred to the present Dholera scheme. The second component will involve development of new transmission elements

The first component will entail creation of a 400kV switchyard along with installation of 2×1500 MVA, 765/400kV interconnecting transformers at the Vataman (AIS) substation. It may be carefully noted that the Gujarat offshore wind transmission project involves capacity augmentation of the Vataman substation that is coming up through Vataman Transmission Ltd. Some elements of this augmentation have now been shifted to the Dholera transmission project as they would need to be commissioned sooner.

The second component involves development of a 220kV switchyard along with installation of 2×500 MVA, 400/220kV interconnecting transformers (ICT) at the Vataman substation and two 220kV line bays for the 220kV double-circuit line from Vataman substation to GETCO’s Dholera-2 substation. The 220kV line, itself, will be implemented by GETCO and will not be part of the Dholera ISTS scheme. Space for the additional infrastructure envisaged at the upcoming Vataman substation will be provided by Vataman Transmission Ltd.

Project Cost

The overall project cost is estimated at Rs.418 crore distributed between the two components as Rs.308 crore and Rs.110 crore, respectively.

Mode Of Implementation

In its ensuing meeting, the National Committee on Transmission (NCT) is expected to deliberate on this scheme and suggest the mode of implementation – whether RTM (regulated tariff mechanism) or TBCB (tariff-based competitive bidding).

Dholera Special Investment Region

The Dholera Special Investment Region is a greenfield industrial smart city coming over a 920-sqkm land expanse in Dholera taluka of Ahmedabad. It is being developed by a special purpose vehicle Dholera Industrial City Development Ltd (DICDL) – a joint venture between the Central government (represented by National Industrial Corridor Development Corporation Ltd) and the Gujarat state government (represented by Dholera Special Investment Region Development Authority).

It may be mentioned that Torrent Power Ltd holds the distribution licence for Dholera SIR (valid up to 2044) and is expected to invest Rs.1,200 crore over the next ten years to develop distribution infrastructure catering to an envisaged peak demand of about 425 MVA. Torrent Power is yet to start commercial operations in Dholera SIR, according to information available with T&D India.

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Chip manufacturing will commence soon in Gujarat: CM Patel

Semiconductors, also referred to as integrated circuits or microchips, are an essential component of electronic devices, facilitating communications, military systems, healthcare, computing, transportation, clean energy, and several other applications.

Gujarat has rolled out a dedicated policy for the semiconductor sector and chip manufacturing will commence soon in the state, Chief Minister Bhupendra Patel said on Friday, assuring that his government will provide necessary assistance to the industry. Patel was speaking after inaugurating the daylong 'Gujarat SemiConnect Conference 2024', covering various avenues of the semiconductor sector, at the Mahatma Mandir convention centre here.

Micron Technology, Tata Electronics and CG Power, which are building their semiconductor plants in Gujarat, have collaborated with the state government as knowledge partners for the conference. Semiconductors, also referred to as integrated circuits or microchips, are an essential component of electronic devices, facilitating communications, military systems, healthcare, computing, transportation, clean energy, and several other applications. In his address, the chief minister assured those keen to invest in the sector that his government would provide all necessary assistance for chip manufacturing facilities in the state.

The CM said Gujarat offers "plug-and-play" facilities at the Dholera Special Investment Region (SIR) for the semiconductor players.

"Taking advantage of this facility, Tata Electronics and its partner, Taiwan's Powerchip Semiconductor Manufacturing Co, are establishing the country's first commercial semiconductor fab (fabrication facility) at Dholera SIR," he said. He said CG Power is also establishing an OSAT (Outsourced Semiconductor Assembly and Test) facility at Sanand. "I am confident chip manufacturing will commence soon in Gujarat. We are also working on creating manpower for this sector," the CM said. In their addresses, top leaders from Micron Technology, Tata Electronics and CG Power stressed the need for the development of infrastructure, rail and road connectivity and other such facilities near Dholera and Sanand where semiconductor units are coming.

Mona Khandhar, principal secretary in the state's Department of Science and Technology, informed the audience that the three chipmakers are on course to start their operations in the state. "Micron has already activated its temporary facilities and its state-of-the-art ATMP (Assembly, Testing, Marking, and Packing) facility worth Rs 22,500 crore is on the way to get commissioned early next year at Sanand,"said the senior IAS officer.

Tata Electronics in partnership with PSMC Taiwan is all set to set up semicon facilities worth Rs 91,000 crore at Dholera and will begin operations by 2026, she said. "CG power in partnership with Renesas, Japan, has geared up to set OSAT facility worth Rs 7,600 crore at Sanand to be commissioned by 2025," she added. In his address, Gursharan Singh, senior vice president at Micron Technology, stressed the need for robust infrastructure and other facilities for the semiconductor sector. "While our primary facility in Sanand is under construction, I am pleased to share that technology transfer, line and product qualification at our mini facility in Sanand is progressing on schedule, " he said.

For India to become a semiconductor nation, it is imperative that power supply remains uninterrupted and consistent and that clean water supply is ensured right at the doorsteps of semiconductor companies, said Singh.

"Equally critical is the development of civic infrastructure in Sanand. (There is a need for) dormitories and housing options for employees, especially for new college graduates and single employees. High-speed rail connectivity, bump-free roads, public transport, luxury hotels, international schools and hospitals, all adjacent to the cluster in Sanand and Dholera (are needed)," he said.

Singh also stressed that direct flights between Ahmedabad and semiconductor nations like Taiwan, South Korea and Japan are essential to facilitating new investments, knowledge sharing and collaboration with overseas partners. Arun Murugappan, chairman of Tube Investments, also talked about the need for infrastructure and facilities similar to that of Taiwan. CG Power and Industrial Solutions is part of Tube Investments of India Limited.

"To ensure India's success in semiconductors, it is crucial to establish a semiconductor cluster similar to the one in Taiwan, having a robust infrastructure including power, water, and connectivity while fostering the co-location of raw material suppliers, equipment suppliers, research institutions, universities and supporting industry, " he said.

Randhir Thakur, CEO and MD of Tata Electronics Private Limited, said the company has committed to invest $11 billion towards its semiconductor fab project in Dholera, which he said will generate over 20,000 jobs.

"This semiconductor fab project in Dholera will bring more than 2,000 ecosystem partners and suppliers, and a few of them have already started working with us. As we build India's first greenfield AI-enabled fab, a key focus for us will be on promoting local industry, He Said.

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Tata Group aims to make Gujarat s Dholera the global epicentre of semiconductor excellence: Tata Electronics CEO Randhir Thakur

Speaking at the Gujarat SemiConnect Conference 2024, the CEO stressed on the importance of creating a robust supply chain and establishing a talent pool. executives from US-based Micron, Tata Group, Taiwanese diplomats, and officials from the governments of India and Gujarat gathered at Gandhinagar’s Mahatma Mandir Convention Centre to commence the Gujarat SemiConnect Conference 2024. The officials urged local industries in the state to expand and diversify their product lines to become part of the emerging semiconductor ecosystem.

As Micron, Tata Electronics (TEPL) in collaboration with PSMC, Taiwan, and CG Power in collaboration with Renesas, Japan, are all targeting to set up their plants in Sanand and Dholera, support from local suppliers will play a crucial role. “For one Tata electronics semiconductor fabrication facility to run successfully, they will probably need about 300 distinct suppliers in the vicinity,” said S Krishnan, secretary, Ministry of electronics and information technology, government of India, at the event.

Earlier this year, the government approved Tata’s proposal to build a semiconductor manufacturing facility in Dholera, Gujarat, in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC). The fab construction is underway and is expected to be ready by 2026. With an investment of Rs 91,000 crore, Tata Electronics aims to build India’s first AI-enabled state-of-the-art fab.

It will have a manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities deploying data analytics and machine learning. The semiconductor fab will manufacture chips for applications such as power management ICs, display drivers, microcontrollers (MCUs), and high-performance computing logic, addressing the growing demand in markets such as automotive, computing and data storage, wireless communication, and artificial intelligence.

Recently, N Chandrasekaran, the chairman of Tata Sons, assumed the additional role of chairman Recently, N Chandrasekaran, the chairman of Tata Sons, assumed the additional role of chairman at Tata Electronics. This transition comes as Tata Electronics is rapidly expanding its semiconductor business. Last year, a former executive from Intel Foundry Services, Randhir Thakur, joined as CEO and MD. For the first time since assuming the role Thakur spoke at a public event, stressing the importance of creating a robust supply chain, establishing a talent pool, and more.

On collaboration with the government

Through proactive and practical policies, the government of Gujarat has successfully secured three out of four semiconductor projects sanctioned by the government of India, along with more than 80 percent of the total investments allocated for the semiconductor programme. These efforts position Gujarat to make a significant and enduring impact on the nation and the global supply chain.

Key factors for semiconductor manufacturing

I firmly believe that to establish a successful innovation-driven manufacturing business, there are three essential components: Technology, talent, and investment. Any one of them is not enough. The governments of India and Gujarat have already taken a bold step by providing the capital necessary for establishing semiconductor businesses. The Tata Group has been able to secure the technology needed for the specialised facility through our partnership with Powerchip, from Taiwan.

On skill development

We are looking forward to collaborating with industry, academic institutions, and other ecosystem players to build the semiconductor talent and infrastructure of tomorrow, right here in Gujarat. We are actively establishing talent as our primary competitive advantage by recruiting global domain experts, consummating partnerships with institutions like IIT Gandhinagar to cultivate tomorrow's workforce, and developing world-class social infrastructure to support this international talent pool.

On building in Gujarat

In Gujarat, we have committed to investing $11 billion towards our fab project in Dholera, which will generate over 20,000 jobs, marking just the beginning of our journey. This first semiconductor fab in Dholera will bring more than 2,000 ecosystem partners and suppliers, and a few of them have already started working with us. As we build India's first greenfield AI-enabled fab in Gujarat, a key focus for us will be on promoting local industries. As we execute at scale, it is important for us to remember that time is of the essence; schedule is always king in the semiconductor industry. So a robust local suppliers’ ecosystem is a differentiating factor and is critical to success both in the construction phase of the fab and even after consummating the operations.

I always say that nobody makes these chips alone. It takes a team. We are already working closely with key global partners to develop a roadmap for building a largely self-sustaining ecosystem across tools, specialty gases, chemicals, and utilities like power, water, and effluent treatment. This would be a great opportunity for local industries to participate in this high-technology ecosystem that will support Indian and global semiconductor supply chains.

There is considerable anticipation among the global customer base regarding these advancements unfolding in India. During my visit to the US last week, I had the opportunity to meet many customers. And I'm pleased to report that they view India and Tata as reliable partners for their semiconductor products. This confidence from customers and their endorsement significantly validates the vision and effort of the government over the years.