Prospective Government Approval for Chip Fab Project: An Insight into Darshan Hiranandani’s 2023 Outlook

Prospective Government Approval for Chip Fab Project: An Insight into Darshan Hiranandani’s 2023 Outlook

The business has submitted proposals for both a compound semiconductor fab facility and an assembly, testing, marking, and packaging (ATMP) unit that will be built in Uttar Pradesh.

According to Darshan Hiranandani, chief executive officer of the Hiranandani group, which is a significant player in the real estate industry and has entered the semiconductor industry through its subsidiary Tarq Semiconductors, the government should approve the group’s compound semiconductor fab project within the next two months.

The business has submitted applications for each to build a compound semiconductor fab facility and assembly, testing, marking, and packaging (ATMP) unit in Uttar Pradesh. Compound semiconductors are crucial in high-power and high-temperature goods and applications such as LED, radio frequency devices, electrical gadgets, cars, etc. After semiconductor manufacture, ATMP, or chip assembly and packaging, is involved. It represents the following link in the semiconductor value chain.

“We have already finished and filed our government application for ATMP and our compound semiconductor fab project. Within the next 30 to 60 days, we anticipate receiving all government clearances, according to Hiranandani.

Hiranandani Group will enlist a joint venture partner to help build up the fabrication, assembly, packaging, and testing operation.

“Our responsibility is to address the India challenge, and we are assembling the world’s top people and partnerships. In other words, it’s a collaboration between Indian expertise and best-in-class partners from around the globe who have done it previously and have other fabs and facilities there. Thus, it will be a collaborative enterprise, according to Hiranandani.

To properly transition from a compound semiconductor fab to an ATMP, “We have partnered with a set of firms from the US and Japan,” the speaker stated.

The fact that operating the fabrication facility in India requires less energy than in other nations is one of the reasons businesses like Hiranandani believe the semiconductor industry to be lucrative. According to experts, a compound semiconductor ecosystem would also enable the development of gadgets that are more energy efficient and will lower energy prices.

When asked about entering the compound semiconductor market, Hiranandani expressed that compound towers can provide significant energy savings and promote energy efficiency in the country. We have discovered that India is now the assembly and manufacturing hub for products like vehicles, washing machines, dryers, TVs, and mobile phones. It is the ideal starting point.

The business anticipates making an initial investment of roughly Rs 2,500 crore in its ATMP facility. The Yamuna Motorway Industrial Development Authority in Uttar Pradesh will host the facility’s construction.

Hiranandani offers a complete range of real estate solutions, along with data center services provided by its subsidiary Yotta. “We’ll be India’s most significant data centre player by the end of this year. And we’ve grown steadily in that area, and as we began working on increasingly sophisticated issues, we started making progress, said Hiranandani.

He continued that we will fully deploy a domestically created public cloud platform in October.

Darshan Hiranandani, the managing director of Hiranandani Group, remains highly optimistic as he anticipates governmental approval for the company’s ambitious chip fab project within the next two months. His statement, made during a recent interview in July 2023, not only displays his confidence in the project’s viability but also signals a new dawn for India’s semiconductor manufacturing sector.

In an industry currently dominated by global powers like Taiwan, South Korea, and the United States, the entry of an Indian company into semiconductor manufacturing could mark a significant turning point. The Hiranandani Group, traditionally known for its accomplishments in the real estate sector, has recognized the growing global demand for semiconductors, accelerated by the COVID-19 pandemic. As work from home, online schooling, and digital services have become more prevalent, electronic devices and, subsequently, semiconductor chips are required.

The proposed chip fabrication plant, colloquially known as a chip fab, will be integral to India’s technological and manufacturing evolution. This venture aligns perfectly with the Government of India’s ‘Make in India’ initiative, which encourages domestic companies to contribute to the nation’s manufacturing industry.

India’s government plays a vital role in this venture. From a regulatory standpoint, the chip fab project needs official approval, which Mr Hiranandani believes will arrive within the next two months. The government’s response has been encouraging, recognizing the project as crucial to meeting India’s internal chip demand, reducing import dependence, and establishing the country as a technological hub.

The government has also acknowledged the importance of chip manufacturing from a strategic standpoint. With global supply chains disrupted due to geopolitical tensions and pandemics, having a domestic chip manufacturing base would provide greater supply assurance. As a result, the government is expected to extend its full support, including approval and potential financial incentives.

The chip fab project will require substantial investment, running into billions of dollars. It is a highly sophisticated industry that requires advanced technology, expert human resources, and a lengthy period for the return on investment. As Hiranandani Group gears up to tackle these challenges, Mr Hiranandani has already been in talks with potential investors, both domestic and international, who have shown interest in this promising project.

In addition to the financial and technical challenges, the project also has to contend with environmental implications. As chip manufacturing involves using hazardous chemicals, the government and the company must strictly comply with environmental norms.

Despite the challenges, Mr Hiranandani remains optimistic about the future. Once approved, the project will become a critical milestone in India’s semiconductor journey. It would reduce India’s dependence on international chip manufacturers and contribute to technological innovation and job creation within the country.

The coming months are crucial for the Hiranandani Group and India’s semiconductor sector aspirations. As Mr Hiranandani and his team eagerly await the government’s green light, the industry, investors, and consumers will watch closely, hoping for a new era in Indian semiconductor manufacturing.