India To Get First Domestically Manufactured Memory Chip By 2024-End: Ashwini Vaishnaw

As South Korea’s Simmtech announced an investment of INR 1,250 Cr in Gujarat during the Vibrant Gujarat Global Summit 2024, union electronics and IT minister Ashwini Vaishnaw said India will get its first domestically made memory chip from Gujarat by the end of the ongoing year.

Simmtech, which manufactures high-layer printed circuit boards for semiconductors, signed a Memorandum of Understanding (MoU) with the Gujarat government to set up a plant in the state to boost the semiconductor ecosystem.

Under the MoU, Simmtech will invest more than INR 1,250 Cr to set up operations in Gujarat and support Micron’s semiconductor plant. The work on setting up the plant will start in March, Vaishnaw added.

It is pertinent to note that last year, semiconductor major Micron announced setting up an assembly and testing plant at Sanand in Gujarat. 

Simmtech CEO Jeffery Chun was reported as Mint by saying that the company is ready to make more investments in India. Its plant in Gujarat is expected to create more than 1,000 direct and indirect job opportunities. 

Simmtech’s proposal to set up a unit in Sanand, close to Micron’s facility, was cleared in September last year.

“The Simmtech plant will come up near Micron’s semiconductor plant that is already being established at Gujarat Industrial Development Corporation’s (GIDC) industrial estate in Sanand,” Vaishnaw said during the summit.

Meanwhile, Micron inked a deal with NamTech to cultivate talent for its semiconductor operations in India. The US firm has already recruited over 200 employees for its plant in the country.

“I would request Micron to collaborate with IIT Gandhinagar to set up a centre of excellence, which will help in building a robust talent pipeline,” the minister added.

The development comes at a time when the Indian government has left no stone unturned to attract semiconductor companies to set up manufacturing operations in India. From a $10 Bn commitment to the India Semiconductor Mission (ISM) to the design-linked incentive scheme, the Centre has taken a number of steps to develop a semiconductor ecosystem in the country.

An expert panel has also recommended setting up a global standard India Semiconductor Research Centre in the country with an outlay of $8 Bn.

A number of Indian startups are also working in the area of semiconductors and their number was expected to surge to 50 by the end of 2023. The Centre was also looking at helping startups partner with global semiconductor companies to develop expertise.