The government of Gujarat has introduced ‘Gujarat Semiconductor Policy 2022-2027’ to enhance its semiconductor manufacturing capabilities.
To facilitate the successful execution of this policy, the state has established the ‘Gujarat State Electronics Mission,’ which aims to strengthen Gujarat’s position in semiconductor self-sufficiency.
Under the Gujarat Semiconductor Policy, the state provides a 100 per cent one-time refund of stamp duty and registration fees. The policy includes various incentives, such as a Rs 2 per unit subsidy on high-quality electricity at competitive rates, a Rs 12 per cubic meter rate for quality water, and exemptions from electricity duty.
To promote Dholera as a leading ‘Semicon City,’ the Gujarat government is offering attractive incentives for semiconductor companies establishing operations there, including subsidies of up to 75 per cent on land acquisition for fabrication projects. Dholera is also being developed as India’s first Greenfield Smart City, benefiting both industries and local residents.
The Gujarat Semiconductor Policy has created a supportive environment for semiconductor firms, positioning the state as a prime destination for businesses in this sector. This strategic initiative has attracted significant investments from four major semiconductor companies, totalling Rs 1.24 trillion for new projects that are expected to generate around 53,000 jobs, according to the state’s science and technology department.
In parallel, to meet the increasing demand for semiconductors and advance India’s self-reliance in this critical sector, the Government of India launched the ‘India Semiconductor Mission’ in 2021 under Prime Minister Narendra Modi’s leadership, allocating a substantial budget of Rs 760 billion for its implementation.
Further bolstering Gujarat’s semiconductor landscape, CG Power and Renesas plans to build a state-of-the-art Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand GIDC, with a total investment exceeding Rs 75 billion. The state government has also approved Kaynes Semicon’s facility in Sanand, which is expected to produce approximately 6 million chips daily with an investment of Rs 33 billion.
These substantial investments in semiconductor projects are anticipated to create numerous high-skilled job opportunities across Gujarat. The new facilities will be crucial in reducing India’s dependence on imported semiconductor chips while fostering job growth in key downstream sectors such as automotive, electronics, medical equipment, and telecommunications.
