Bhupendra Patel, the Chief Minister(CM) of Gujarat, has launched ‘Gujarat Semiconductor Policy 2022-2027‘, and became the first Indian state to implement a dedicated semiconductor policy.
- Gujarat has established the ‘Gujarat State Electronics Mission,‘ to ensure the effective implementation of this policy. The mission is a dedicated institution aimed at advancing Gujarat’s leadership in semiconductor self-reliance.
- This initiative complements the central government’s ‘India Semiconductor Mission,’ launched in 2021 with a budget of Rs 76,000 crore to boost domestic semiconductor production.
Note: India’s semiconductor market, valued at USD 15 billion in 2020, is projected to surpass USD 63 billion by 2026.
Gujarat Semiconductor Policy:
i.As part of the Gujarat Semiconductor Policy, the state offers a 100% one-time refund of stamp duty and registration fees.
ii.The policy also includes a range of incentives, such as a Rs 2 per unit subsidy on high-quality electricity supply at globally competitive rates, a Rs 12 per cubic metre rate for quality water, and an exemption from electricity duty.
iii.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.
iv.This initiative has attracted significant investments, with 4 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.
Projects related to Semiconductor sector:
i.CM Bhupendra Patel laid the foundation stone for Micron’s advanced semiconductor ATMP plant in Sanand(Gujarat), marking an investment of over Rs 22,500 crore.
ii.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 Rs 91,000 crore.
iii.Mumbai(Maharashtra) based CG Power & Industrial Solutions Limited and Japan based Renesas Electronics Corporation are set to establish a cutting-edge OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand GIDC, with a total project investment of over Rs 7,500 crore.
iv.The Gujarat government has approved the establishment of Kaynes Semicon’s facility in Sanand. It is expected to produce around 6 million chips daily with an investment of Rs 3,300 crore.
Points to note:
i.The investments by semiconductor units in Gujarat are set to generate a wave of high-skilled job opportunities.
ii.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.
iii.With the new semiconductor policy, Gujarat has become a frontrunner in strengthening India’s semiconductor ecosystem.
iv.In addition to the capital expenditure assistance provided by the Government of India for semiconductor and display fabrication units, the Gujart government has augmented this support with an additional 40% financial assistance.
About Gujarat:
Chief Minister(CM) – Bhupendra Patel
Governor – Acharya Devvrat
Capital – Gandhinagar
National Park(NP) – Gir National Park, Vansda National Park
