Gujarat becomes first Indian state to launch dedicated semiconductor policy

Gujarat has positioned itself at the forefront of India's semiconductor drive with the launch of the 'Gujarat Semiconductor Policy 2022-2027,' an initiative aligning with Prime Minister Narendra Modi's Viksit Bharat@2047 vision.

Under Chief Minister Bhupendra Patel’s leadership, the policy includes the establishment of the 'Gujarat State Electronics Mission,' a dedicated body to support Gujarat’s efforts in semiconductor self-reliance.

The state has already seen significant developments. Chief Minister Patel recently laid the foundation for Micron’s Rs 22,500 crore ATMP plant in Sanand. Further, a new fabrication facility in Dholera’s upcoming ‘Semicon City’ will be set up by Tata Electronics and Taiwan's PSMC, a Rs 91,000 crore investment aimed at creating India’s first AI-enabled semiconductor fabrication facility.

Further expanding its semiconductor ecosystem, Gujarat has approved major projects including CG Power and Renesas' Rs 7,500 crore OSAT facility in Sanand, and a chip production unit by Kaynes Semicon with an investment of Rs 3,300 crore. These facilities are projected to significantly boost local semiconductor manufacturing, creating thousands of skilled jobs and reducing India’s dependence on imports in critical sectors like electronics and automotive.

To support the semiconductor industry, Gujarat has introduced a range of incentives under the policy. The state offers a 100% stamp duty and registration fee refund for new projects, a Rs2 per unit subsidy on electricity, affordable water rates, and an electricity duty exemption. To attract companies to Dholera, set to be India’s first Greenfield Smart City, Gujarat provides a subsidy of up to 75% on land for fabrication projects.

This push has already attracted over Rs 1.24 lakh crore in planned investments from top semiconductor firms, with the potential to create approximately 53,000 jobs. This aligns with the national ‘India Semiconductor Mission,’ launched in 2021 with Rs 76,000 crore, to reduce dependence on imports and secure a place for India in the global semiconductor market, projected to reach $63 billion by 2026.