State Governments Aid Housing Support For India’s Upcoming Semiconductor Manufacturing Hubs

In line with the advancement of semiconductor manufacturing facilities in Assam, Gujarat and Tamil Nadu, the state governments are contributing infrastructure support, including accommodation for workers, at these emerging manufacturing hubs, reports Economic Times.

For the semiconductor fabrication facility at the Dholera Special Investment Region (DSIR) in Gujarat, and the Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam, the state governments have allocated land at subsidised rates for the construction of large-scale housing projects, hostels, and dormitories for the workforce.

Both facilities are to be established by Tata Electronics Private Limited (TEPL).

As per an official, the Gujarat government is developing a housing project for workers of the chip fabrication unit planned at Dholera — including 1,500 flats for workers and engineers, along with hostels and dormitories capable of accommodating up to 10,000 shop floor workers.

“For the Assam and Gujarat locations of Tata units, there is complete support from the respective state governments. For Sanand, where the Micron and CG Power units are located, some residential units are already available,” the official said.

For the chip packaging facility being constructed in Morigaon, Assam, the site, formerly housing paper mills, already has some existing housing structures.

"The housing needs for a chip factory are very different from those for paper mills. Although Morigaon has an established town nearby, the housing facilities must be on campus," the official added.

In Tamil Nadu, at the Hosur plant where Tata Electronics assembles iPhones, the state government is supporting a housing initiative in three ways — providing land at subsidised rates, investing in the housing project, and funding the construction of an access road to the plant.

Additionally, the Tamil Nadu government is constructing a state-run facility in Sriperumbudur with an 18,000-bed capacity exclusively for Taiwanese contract manufacturer Foxconn, scheduled to open in August.

The government is also pushing various other industrial housing projects, including one in Shoolagiri, Krishnagiri district.

The state government is expected to invite tenders for this project, which aims to support industrial development in the region.