Gujarat Leads India with Groundbreaking Semiconductor Policy

Gujarat, under Chief Minister Bhupendra Patel, unveils its pioneering Semiconductor Policy 2022-2027, fostering strategic investments in semiconductor manufacturing and reducing reliance on imports. Establishing 'Gujarat State Electronics Mission', the state aims to attract major investments, generate jobs, and bolster India’s self-reliance in semiconductor technology by 2047.

The Gujarat government, under the leadership of Chief Minister Bhupendra Patel, has introduced the nation's first 'Gujarat Semiconductor Policy 2022-2027', aligning with Prime Minister Narendra Modi's Viksit Bharat@2047 vision. To implement this visionary policy, the state has established the 'Gujarat State Electronics Mission', a key institution aimed at asserting Gujarat's leadership in semiconductor self-reliance.

As part of this initiative, the foundation stone was laid for Micron's advanced semiconductor ATMP plant in Sanand, investing over Rs22,500 crore. At Dholera's 'Semicon City', Tata Electronics Private Limited and Taiwan's PSMC are creating India's inaugural AI-enabled semiconductor fabrication facility with more than Rs91,000 crore investment.

Further boosting Gujarat's semiconductor ecosystem, CG Power and Renesas plan to set up a state-of-the-art OSAT facility in Sanand GIDC, with more than Rs7,500 crore investment. Kaynes Semicon's new facility project is projected to produce 6 million chips daily, marking a Rs3,300 crore investment. These developments are poised to generate high-skilled job opportunities and reduce India's semiconductor import dependence.

The Gujarat government offers substantial incentives to boost local semiconductor manufacturing, providing a 100% one-time refund of stamp duty and registration fees. This policy includes a Rs2 per unit subsidy on electricity and a Rs12 per cubic metre water rate. Dholera's development as a 'Semicon City' entails a land subsidy of up to 75% for fabrication projects.

These strategic moves have attracted major investment commitments, with four semiconductor firms poised to invest Rs1.24 lakh crore, creating approximately 53,000 jobs, according to the state's Science and Technology Department. Simultaneously, Prime Minister Modi's 'India Semiconductor Mission' continues to propel the national self-reliance agenda, backed by a Rs76,000 crore budget.

(With inputs from agencies.)