Gujarat’s Semiconductor Policy Drives Economic Growth

November 9, 2024

The Gujarat government has launched the Gujarat Semiconductor Policy 2022-2027. This initiative aligns with Prime Minister Narendra Modi’s vision for a developed India by 2047. It aims to enhance semiconductor self-reliance in the state. Chief Minister Bhupendra Patel leads this ambitious policy. Recent milestones include important investments in semiconductor projects.

Key Features of the Gujarat Semiconductor Policy

The policy focuses on attracting investments in semiconductor manufacturing. It offers various incentives to semiconductor businesses. These include a 40% subsidy on capital expenditure. Companies can also benefit from a 100% refund on stamp duty and registration fees. Additionally, there is a Rs 2 per unit subsidy on electricity. Water usage is subsidized at Rs 12 per cubic meter. The policy promotes land acquisition subsidies of up to 75% for units in Dholera.

Major Investments and Projects

Several high-profile projects are underway in Gujarat. Micron is establishing an advanced semiconductor assembly plant in Sanand. This project is valued at over Rs 22,500 crore. In Dholera, Tata Electronics and Taiwan’s Powerchip are setting up India’s first AI-enabled semiconductor fabrication facility. This facility will involve an investment exceeding Rs 91,000 crore. CG Power and Renesas are also developing an Outsourced Semiconductor Assembly and Test facility in Sanand, with a project cost of more than Rs 7,500 crore. Kaynes Semicon will produce around 6 million chips daily, investing Rs 3,300 crore.

Economic Impact and Job Creation

These projects are expected to generate thousands of high-skilled jobs. The Gujarat government anticipates the creation of approximately 53,000 jobs through these initiatives. The cumulative investment from major companies has reached Rs 1.24 lakh crore. The policy complements the central government’s ‘India Semiconductor Mission’ launched in 2021.

Strategic Importance of Dholera and Semicon City

Dholera is being developed as India’s first Greenfield Smart City. It is envisioned as ‘Semicon City,’ a strategic hub for semiconductor investments. This region aims to encourage industry growth and attract further investments. The initiatives in Dholera are crucial for establishing Gujarat as a semiconductor manufacturing leader.

Future of India’s Semiconductor Market

India’s semiconductor market is on a growth trajectory. Valued at $15 billion in 2020, it is projected to exceed $63 billion by 2026. The Gujarat Semiconductor Policy plays a vital role in this expansion. It supports the central government’s efforts to boost domestic semiconductor production. The collaborative approach between state and central initiatives strengthens India’s position in the global semiconductor landscape.

Important Facts for Exams:
Dholera: Dholera is being developed as India’s first Greenfield Smart City. It aims to attract semiconductor investments. This region is envisioned as a strategic hub for industry growth.
Gujarat State Electronics Mission: The Gujarat State Electronics Mission supports the semiconductor policy. It aims to enhance self-reliance in semiconductor manufacturing. This mission facilitates important investments in the electronics sector.

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