Hiranandani Group To Set Up Chip Testing And Packaging Unit, Compound Semiconductor Fab In UP's Noida; Expects Approval By October

Tarq Semiconductors, a Hiranandani Group company, has applied to set-up a fab plant in Uttar Pradesh's Noida.

The firm wants to set-up both, an assembly, testing, marketing and packaging (ATMP) unit and compound semiconductor fab plant.

The government approval for the fab plant is likely to be granted by October.

The firm will initially invest Rs 2,500 crore in the ATMP unit. However, the investment for the fab plant has not been disclosed yet.

The company has submitted its applications for both an assembly, testing, marking, and packaging (ATMP) unit and compound semiconductor fab plant to be set up in Noida.

ATMP comes into play after semiconductor fabrication. It is the next step in the semiconductor value chain.

"We expect to get all approvals from the government within the next 30 to 60 days,” company CEO Darshan Hiranandani was quoted as saying by The Financial Express.

The company is planning to rope in a joint venture partner for the plant.

"Our job is to solve the India problem, and we are getting the best talent globally and a partnership globally. So it’s a partnership of Indian expertise with global best-in-class partners who have done it before and who have other fabs and facilities around the world. So it’s going to be a joint venture,” Hiranandani said.

"We have tied up with a set of firms from the US and Japan to actually focus on getting right from a compound semiconductor fab to an ATMP,” he added.

Earlier in March, the Hiranandani Group had sought 100 acres of land from the Yamuna Expressway Industrial Development Authority (YEIDA) for setting up the semiconductor park.

The company anticipates that the first phase of the project would be implemented within 24 months of receiving all approvals.

Further, the group has also sought 200,000 litres of water per hour in phase 1 (and 750,000 litres per hour for all 3 phases) for running the unit.

A power substation providing 50MW has also been sought.

Earlier on Sunday (30 July), Union Minister of State for Electronics and IT Rajeev Chandrasekhar had said that the government is likely to grant approval for at least two mega deals to manufacture silicon fabs by October-November this year.

"I am willing to tell you with reasonable confidence that before October or November this year, fabs will be approved. This will be fab manufacturing, the actual wafer fab," Chandrasekhar was quoted as saying by the Times of India.

This announcement came as global companies recently visited Gujarat for the "Semicon India 2023" event to expand semiconductor production in India.

Chandrasekhar stated that companies are willing to invest in India due to the strong demand for semiconductors and the country's growing reputation as a trusted partner in the electronics ecosystem.