Under Chief Minister Bhupendra Patel’s leadership, Gujarat has introduced the country’s first ‘Gujarat Semiconductor Policy 2022-2027’, an ambitious strategy aimed at solidifying the state’s position as a semiconductor manufacturing powerhouse, advancing PM Modi’s vision of a developed India by 2047.
To propel the policy’s goals, the Gujarat government has launched the Gujarat State Electronics Mission, a dedicated institution supporting the state’s efforts towards semiconductor self-sufficiency. A significant milestone under this initiative is Micron’s Rs 22,500 crore ATMP plant, currently under construction in Sanand. The state’s ‘Semicon City’ in Dholera is also gaining momentum as Tata Electronics Private Limited (TEPL) partners with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to build India’s first AI-enabled semiconductor fabrication plant, a venture exceeding Rs 91,000 crore in investment.
In addition, companies like CG Power and Renesas are establishing an advanced Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand with an investment of over Rs 7,500 crore, and Kaynes Semicon is setting up a facility projected to produce around 6 million chips daily with an investment of Rs 3,300 crore. Collectively, these projects are expected to generate around 53,000 high-skilled jobs across the state.
In line with the India Semiconductor Mission, launched by the central government in 2021, Gujarat’s semiconductor policy offers substantial incentives. These include a 100% refund on stamp duty and registration fees, a Rs 2 per unit electricity subsidy, and highly competitive water rates. Additionally, semiconductor businesses setting up in Dholera can benefit from a 75% subsidy on land acquisition. Dholera, poised to become India’s first Greenfield Smart City, will provide advanced infrastructure to support industries and residents alike.
With a total investment commitment of Rs 1.24 lakh crore across key semiconductor projects, Gujarat’s initiatives are set to significantly reduce India’s reliance on semiconductor imports and drive the country’s journey toward self-reliance in the semiconductor sector. This growth is timely, as India’s semiconductor market, valued at $15 billion in 2020, is expected to surpass $63 billion by 2026.
