Simmtech Holdings to invest Rs 1,250 crore for semiconductor ecosystem in Gujarat

The company has facilities in Japan, China and Korea.

By Kiran Murali calendar 11 Jan 2024 Views icon3497 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Simmtech Holdings to invest Rs 1,250 crore for semiconductor ecosystem in Gujarat

In what could be a major boost semiconductor ecosystem in India, South Korean semiconductor company Simmtech Holding will invest over Rs 1,250 crore to set up a factory in Gujarat. Simmtech’s announcement follows Micron’s decision to set up a semiconductor assembly and testing facility in the state.

Simmtech manufactures high-level PCBs for semiconductors. For the mobility space, the company offers automotive boards used in engine control units, connectivity and ADAS. The company has facilities in Japan, China and Korea.

Recently, US-based Micron Technology, which makes memory and storage solutions for automobiles, consumer electronics and computers, started the construction of its USD 2.75-billion assembly and test facility in Sanand, Gujarat. The first phase of the facility’s construction is expected to be completed by 2025.

Simmtech India has signed a memorandum of understanding with the Gujarat government in this regard. “The big influence is coming from our customer, which Micron. Their investment has a big influence on our decision-making process. We are coming in with a different angle, as a co-location investment and we have done this micron many times,” Chief Executive Officer Jeffery Chun said at the Vibrant Gujarat event today.

“We have signed a memorandum of understanding, yet to finalise of the constitution and execution plans,” he noted. 

Semiconductors are a very critical component in vehicles, used in engine control units, safety systems, ADAS and connectivity.  A shortage of semiconductors following the pandemic had choked the production of vehicles across the globe.

Tata Group Chairman N Chandrasekaran has also said his company is close to announcing plans to set up a semiconductor fabrication plant in Dholera, Gujarat.

The central government provides subsides it companies settings up semiconductor ecosystem in the country through it  production linked incentives, while the Gujarat government’s semiconductor policy provides incentives of up to 40% on the capital expenditure under national schemes for semiconductors and display fab ecosystem.

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