In line with Prime Minister Narendra Modi’s Viksit Bharat@2047 vision, Gujarat has launched India’s first ‘Gujarat Semiconductor Policy 2022-2027,’ aiming to establish itself as a powerhouse in semiconductor manufacturing. Under Chief Minister Bhupendra Patel’s leadership, this policy seeks to enhance self-reliance in semiconductors and attract massive investments in the field.
Landmark Investments and Key Projects
Gujarat has successfully attracted investments from prominent global players, with key projects already underway. Chief Minister Patel recently laid the foundation for Micron’s semiconductor assembly, test, mark, and pack (ATMP) plant in Sanand, a project valued over Rs 22,500 crore. In Dholera, Tata Electronics Private Limited (TEPL) and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) are establishing India’s first AI-enabled semiconductor fabrication facility with an investment surpassing Rs 91,000 crore.
Additionally, CG Power and Renesas are investing Rs 7,500 crore in a state-of-the-art Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, while Kaynes Semicon’s facility in the same region will produce an estimated 6 million chips daily, supported by a Rs 3,300 crore investment.
Incentives and Support Under the Gujarat Semiconductor Policy
The Gujarat government is offering a suite of incentives to support semiconductor units. Companies can benefit from a 40% subsidy on capital expenditure, a 100% one-time refund on stamp duty and registration fees, and discounted electricity and water rates. For units in Dholera’s ‘Semicon City,’ there is a land acquisition subsidy of up to 75%, fostering an attractive environment for semiconductor investments.
Creating Jobs and a Sustainable Ecosystem
This initiative is set to generate approximately 53,000 high-skilled jobs in Gujarat, advancing India’s goal of semiconductor self-reliance. The state’s support aligns with the central government’s ‘India Semiconductor Mission,’ which allocated Rs 76,000 crore in 2021 to boost domestic semiconductor production.
Conclusion: Paving the Way for a Self-Reliant Future
Gujarat’s semiconductor policy represents a bold step towards transforming India into a global semiconductor hub. With significant investments and government support, the state is on track to strengthen the nation’s semiconductor ecosystem, driving job creation and fostering a sustainable, self-reliant semiconductor industry.
