Gujarat becomes India's first state to implement a dedicated semiconductor policy

Gandhinagar (Gujarat) [India], November 7 (ANI): In alignment with Prime Minister Narendra Modi's ambitious vision for a Viksit Bharat@2047, the Gujarat government, led by Chief Minister Bhupendra Patel, has launched the nation's first 'Gujarat Semiconductor Policy 2022-2027'. To ensure the effective implementation of this landmark policy, Gujarat has established the 'Gujarat State Electronics Mission,' a dedicated institution aimed at advancing the state's leadership in semiconductor self-reliance.
Under CM Patel's leadership, the foundation stone for Micron's advanced semiconductor ATMP plant was laid in Sanand, marking an investment of over Rs22,500 crore. In Dholera's 'Semicon City', Tata Electronics Private Limited (TEPL) and Taiwan's PSMC are set to establish India's first commercial Artificial Intelligence (AI)-enabled semiconductor fabrication facility, with an investment exceeding Rs91,000 crore.
Further strengthening Gujarat's semiconductor ecosystem, CG Power and Renesas will set up a cutting-edge OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand GIDC, with a total project investment of over Rs7,500 crore. Additionally, the state government has approved the establishment of Kaynes Semicon's facility in Sanand, projected to produce around 6 million chips daily with an investment of Rs3,300 crore.
The substantial investments by semiconductor units in Gujarat are set to generate a wave of high-skilled job opportunities across the state. These state-of-the-art facilities will play a pivotal role in reducing India's reliance on imported semiconductor chips while catalysing job creation in critical downstream sectors such as automotive, electronics, medical equipment, and telecommunications. With the launch of this forward-looking semiconductor policy, Gujarat has emerged as a frontrunner in strengthening India's semiconductor ecosystem.

The Gujarat government has been a steadfast partner in facilitating the growth of the semiconductor industry, offering robust support for capital expenditure and local manufacturing bases. In addition to the capital expenditure assistance provided by the Government of India for semiconductor and display fabrication units, the state government has augmented this support with an additional 40% financial assistance.
As part of the Gujarat Semiconductor Policy, the state offers a 100% one-time refund of stamp duty and registration fees. The policy also includes a range of incentives, such as a Rs2 per unit subsidy on high-quality electricity supply at globally competitive rates, a Rs12 per cubic metre rate for quality water, and an exemption from electricity duty.
To accelerate the development of Dholera as a premier 'Semicon City', the Gujarat government is providing attractive incentives for semiconductor units setting up operations in the region, including a subsidy of up to 75% on land acquisition for fabrication projects. Dholera is also being developed as India's first Greenfield Smart City, benefiting both industries and residents.
Under the Semiconductor Policy, the Gujarat government has established a supportive ecosystem for semiconductor companies, positioning the state as the top choice for businesses in this sector. This strategic initiative has attracted significant investments, with four leading semiconductor companies set to invest a total of Rs1.24 lakh crore in new projects, which are expected to create approximately 53,000 new job opportunities, as per the state's Science and Technology Department.
Meanwhile, to address the growing demand for semiconductors and propel India towards self-reliance in this vital sector, the Government of India, under the leadership of Prime Minister Narendra Modi, launched the 'India Semiconductor Mission' in 2021, with a substantial budget of Rs76,000 crore allocated to this mission.
India's semiconductor market, valued at $15 billion in 2020, is on a remarkable growth trajectory and is projected to exceed $63 billion by 2026--reflecting a growth of over 400%. (ANI)