Gujarat to be first state to implement a dedicated semiconductor policy

Gujarat government has introduced India’s first ‘Gujarat Semiconductor Policy 2022-2027.’ Led by Chief Minister Bhupendra Patel, this ambitious policy aims to solidify Gujarat’s position as a leader in semiconductor self-reliance, supported by the newly created Gujarat State Electronics Mission.

Marking a milestone under this policy, CM Patel recently laid the foundation stone for Micron’s advanced semiconductor assembly, test, mark, and pack (ATMP) plant in Sanand, a project valued at over Rs 22,500 crore. In Dholera’s emerging ‘Semicon City,’ 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 exceeding Rs 91,000 crore.

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In further expansion, CG Power and Renesas will set up a state-of-the-art Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, a project totaling more than Rs 7,500 crore.

The government has also approved Kaynes Semicon’s facility in Sanand, anticipated to produce around 6 million chips daily with an investment of Rs 3,300 crore. These projects, supported by the Gujarat Semiconductor Policy, are set to generate thousands of high-skilled jobs across the state. The policy further offers semiconductor businesses incentives, such as a 100% one-time refund on stamp duty and registration fees, a Rs 2 per unit electricity subsidy, and a Rs 12 per cubic meter rate for water.

The policy also includes up to 75% land acquisition subsidy for semiconductor units in Dholera, which is being developed as India’s first Greenfield Smart City.

This region, envisioned as ‘Semicon City,’ is a strategic hub aimed at attracting semiconductor investments and fostering industry growth. According to the state’s Science and Technology Department, these projects are expected to create approximately 53,000 jobs.