A high-profile Japanese delegation visits Gujarat’s Dholera SIR as Tata and global players build India’s first semiconductor ecosystem

It seems there is a race going on to invest in Dholera SIR (Special Investment Region). In a recent development, a Japanese semiconductor delegation comprising 20 semiconductor support companies visited Dholera to explore investment opportunities in India’s growing chip manufacturing sector. The delegation also included senior representatives from one of the world’s biggest precision engineering companies, Shimizu Corporation, reported Economic Times.

This high profile visit took place after SEMICON India 2025, an event organized to showcase India’s vision and future plan in the field of semiconductors. The meeting between Indian officials and this Japanese delegation happened at the ABCD Building in Dholera. The focus was mainly on how Japanese companies can collaborate with their tech expertise with India’s talent and help make Dholera an economic hub for semiconductors.

The Japanese delegation emphasized on the need of setting up a precision facility for Japanese SMEs, who will in future supply Tata Semiconductor plant and other fab facilities. They also stressed upon setting up warehouses, clean rooms and gas distribution systems. Naturally, the talks further also discussed about the residential and hospitality projects for experts who will work in Dholera in future, like engineers, expatriates, managers and other skilled workers.

Greenfield Advantage

The biggest advantage that the Dholera SIR has is that it is India’s first greenfield project, meaning everything from road to power, expressway to airport, will be made from scratch. The area covering over 920 sq km has no legacy issues, like traffic jams, waterlogging, and drainage problem. The Dholera Smart City is being readies on plug-and-play infrastructure, which means everything from uninterrupted supply of power, water, gas pipeline supply will be ready from day 1.

Strategic Connectivity

Dholera, which is part of Delhi Mumbai Industrial Corridor (DMIC), has seamless connectivity whetehr by road, water or air. The six-lane Ahmedabad-Dholera Expressway is ready to function, the work of Dholera International Airport is in full swing, and the area is also very close to Bhavnagar Sea Port. Another project that has been recently announced is connecting Dholera with Metro rail.

Sustainability At Scale

World’s largest solar park, with a capacity of 5 GW, is being established in Dholera Smart City. The solar park will ensure unhindered supply of clean and safe energy to industries like semiconductors and other advanced technology companies. This makes this city not only smart but sustainable also.

India’s Semiconductor Push

There are very few countries in the world that have emerged as the hub for Japanese semiconductors. However, it makes the supply chain vulnerable and concentrated in limited hands – Taiwan, South Korea and China.

India has launched many initiatives to boost chip-making locally, by offering subsidies & incentives, fast approvals and infrastructural support. Dholera is part of that initiative to put India’s position as the hub of semiconductors. Tata Electronic has already announced that it is investing Rs 91,000 crore in partnership with Taiwan’s Power chip Semiconductor Manufacturing Corporation (PSMC), to create india’s most advanced semiconductor fab facility in Dholera. The plant is expected to be operational by the end of next year. The impact of this initiative is that numbers of companies who are part of the chip-making ecosystem have either announced setting up their plants by investing billions of dollars or they are exploring investment opportunities in Dholera Smart City.

Growing Web Of Global Partnerships

Much before the visit of this Japanese delegation, many Japanese companies have already entered Dholera. Tokyo Electro, which is a global leader in semiconductor equipment, has already announced that it is going to set up office in Dholera Smart City to support Tata Semiconductor fab facility. Linde, the German company with expertise in industrial gases, is already in advanced talks to establish a plant in Dholera.

What This Means For Gujarat & India

Thousands of jobs, direct or indirect, will be created. There will be a huge demand for engineers, technicians, and logistics, hospitality. Dholera will help in India’s chip dependency on other countries and also boost export demand, placing India’s position as a global destination for semiconductors.

The Biggest Beneficiary

The biggest advantage is for the early investors who believed in Dholera and put their money at the very beginning of the development of this smart city. Investors should understand that Dholera is not just another real estate opportunity, but it’s a once in a lifetime opportunity for them to be part of the government’s most ambitious industrial transformation. Things are moving fast with the backing of both central and Gujarat governments. Massive investments are pouring in from all sectors –residential, commercial and industrial. People who had invested in 2015 have already seen 10 times appreciation of the value of the land. The presence of companies like Tata, ReNew, Fujifilm, Tokyo Electron Linde, L&T and the policy support by the government has de-risked the investments. Whether you are a first time investor, small investor or an institutional investor, Dholera has emerged as the most safe-bet investment destination in the world.

Bottomline

The Japanese delegation visiting Dholera Smart City is just a teaser of a big picture of growth in Dholera. Many, who doubted Dholera as just a plan on paper, can now see for themselves that things are rather moving rapidly. The Activation Zone is already ready with infrastructure in place and many companies have already started their operations, Dholera is no more about future, but present. Dholera is already getting global attention for being the next and a critical node in the global semiconductor supply chain. And with mega projects like Dholera International Airport, expressway and solar park already in final stages, Dholera is slowly and gradually on the path becoming the epicenter of India’s future tech.

Time To Act

If you are still thinking about investing in this future city of India named Dholera, then this is the perfect time to act. Don’t wait for a friend or a relative to invest first and then be a follower. Take the first mover advantage by buying land or plot at a much cheaper rate now. There should be an iota of no doubt in anybody’s mind that Prices will multiply soon, with so much development work taking place.

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