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Mordern Civilization: DholeraSIR

A large section of media wrote and spoke about Vedanta-Foxconn setting up their semiconductor and display manufacturing plant in Dholera, Gujarat on 20 Feb 23. Whether one takes the cue from Robert Kaplan’s “The Revenge of Geography” or it is history repeating itself, Dholera is poised to be the chip manufacturing powerhouse of the future.

Going back in time, Dholera was an ancient port city, strategically located at the heart of Gulf of Khambhat. The Gulf of Khambhat encompasses a large part of the Eastern Saurashtra coast and has preserved the remains of the oldest civilization of the subcontinent. This famous Harappan port town at Lothal is situated at the head of the Gulf of Khambhat. Historical period remains have been discovered at Vallabhi on the western coast and Hathab on the southwestern coast of the Gulf as well. This exceptional connectivity of Dholera to port towns through well-laid-out land routes presumably made it a center of globalisation, which resulted in this being a trade hub of the ancient past.

Dholera is India’s first platinum-rated greenfield smart city and is an integral part of 32 smart city projects in the ambitious National Industrial Corridor Development. The site is now earmarked as the home of a roughly Rs. 1.64 lakh crore ($20 billion) semiconductor fabrication plant to be built by Taiwan’s Hon Hai Technology Group, also known as Foxconn, in a tie-up with Indian-focused commodities powerhouse Vedanta Group. The Foxconn-Vedanta deal is one of the largest corporate investments in India in the semiconductor space. It is anticipated that the construction is likely to begin soon with operationalisation of the facility will duly happen in a well-defined time frame. In the policy paradigm, the government of India has announced a ten billion dollars’ worth production-linked incentive to draw investment to the strategic and critical sector of semiconductors, which in itself is pathbreaking and better than any envisaged policy for this domain, anywhere in the world. Gujarat semiconductor policy clearly gives further advantage to the industry in terms of subsidy, land, tariffs and other associated aspects.