In line with Prime Minister Narendra Modi’s vision for a self-reliant India by 2047, the Gujarat government, under the leadership of Chief Minister Bhupendra Patel, has unveiled the country’s first-ever ‘Gujarat Semiconductor Policy 2022-2027’. This policy aims to establish Gujarat as the leader in India’s semiconductor manufacturing sector and reduce dependence on foreign imports. To ensure successful implementation, the state has set up the ‘Gujarat State Electronics Mission’, a dedicated body to oversee the growth of the semiconductor ecosystem.
A significant milestone in this mission was the laying of the foundation stone for Micron’s advanced semiconductor ATMP (Assembly, Testing, Marking, and Packaging) plant in Sanand, with an investment of over $2.7 billion. Furthermore, in Dholera’s emerging ‘Semicon City’, Tata Electronics and Taiwan’s PSMC will jointly build India’s first commercial AI-enabled semiconductor fabrication facility, with a staggering investment of $11 billion.
The Gujarat government has also secured additional investments from CG Power and Renesas, which will establish an OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand GIDC, worth over $900 million. Another key project, Kaynes Semicon’s facility in Sanand, aims to produce around 6 million chips daily, with an investment of $400 million.
These investments are expected to create thousands of high-skilled jobs, stimulate critical sectors like automotive, electronics, medical equipment, and telecommunications, and accelerate the state’s journey towards semiconductor self-sufficiency.
To support the semiconductor industry’s growth, Gujarat has introduced a range of incentives as part of its Semiconductor Policy. This includes a 100% one-time refund on stamp duty and registration fees, a $0.24 per unit subsidy on electricity, a $0.15 per cubic meter water subsidy, and exemptions from electricity duty. To further boost Dholera’s semiconductor growth, the state is offering up to a 75% subsidy on land acquisition for fabrication projects.
The Gujarat government’s proactive efforts have already attracted significant investments, with four major semiconductor companies pledging a total of $15 billion, which is expected to generate around 53,000 new job opportunities. This positions Gujarat as a prime destination for semiconductor businesses, aligning with the national ‘India Semiconductor Mission’, which was launched by the Indian government in 2021 with a $9.1 billion budget to promote semiconductor manufacturing across the country.
India’s semiconductor market, valued at $15 billion in 2020, is expected to surpass $63 billion by 2026, growing over 400%, as the nation seeks to establish itself as a global semiconductor manufacturing hub. Through the Gujarat Semiconductor Policy and these massive investments, the state is playing a pivotal role in making India self-reliant in this critical sector.
