Gujarat will play a key role in India’s semiconductor value chain, and Chief Minister Bhupendra Patel has ensured that the production of chips will start in the state soon. Gujarat is becoming a semiconductor hub thanks to strong industrial policy, foreign investment, and infrastructure support.
Semiconductor Policy Helps in Development
At the helm of CM Patel, Gujarat became the first state in India to formulate a dedicated semiconductor policy (2022–27). To promote chip manufacturing and display initiatives, this policy offers several benefits, including a 75% land subsidy, a Rs 2/unit subsidy on electricity, a Rs 12/m³ water rate, and a 100% rebate on stamp-duty.
The Gujarat State Electronics Mission establishes Gujarat as the preferred destination for semiconductor plants and is a central organization to put the policy into practice.
At the Vision Summit, MoUs amounting to over Rs. 1.5 lakh crore were signed.
Four out of the five semiconductor plants being established in India will be located in Gujarat, the chief minister announced at the Gujarat Semi Connect ISEA Vision Summit 2025.
The most important memorandums of understanding are:
- Along with Himax and PSMC of Taiwan, Tata Electronics is constructing a 91,526-crore AI-enabled semiconductor manufacturing plant at Dholera Semicon City.
- NextGen has invested Rs. 10,000 crore to set up a compound semiconductor manufacturing and opto-electronics plant at Dholera in association with Hitachi and Solid Lite.
- Jabil Inc. will be investing one billion rupees for the establishment of a silicon photonics manufacturing plant in Gujarat.
- Kaynes Semicon is setting up a plant in Sanand, with a full line in January 2026 and initial production through a pilot line in June 2025.
Timelines and Start Dates of Operations
CM Patel announced that Gujarat will soon begin chip manufacturing at the Gujarat SemiConnect Conference 2024. The state is offering plug-and-play infrastructure at Dholera SIR, and CG Power, Tata Electronics, and Micron Technology are all together acting as knowledge partners.
- The start of 2025 would be when Micron’s Rs. 22,500 crore Sanand ATMP manufacturing plant would go on stream.
- Tata Electronics’ Dholera plant will probably be ready to begin operations by 2026.
- The Sanand CG Power–Renesas OSAT plant, with a cost of Rs. 7,600 crore, will come on stream in 2025.
Strategic Benefits & Job Creation
Tens of thousands of high-paying jobs, both direct factory jobs and indirect opportunity jobs in suppliers and ecosystem partners, will be expected to arise from these projects.
With the commitments of Tata, Micron, Kaynes, CG Power, NextGen, and other companies, and investments of more than Rs. 1.24 lakh crore, Gujarat is quickly evolving with a local-to-global value chain of semiconductors.
Conclusion
Gujarat is soon becoming a semiconductor production hub in the vision of Chief Minister Bhupendra Patel. Production of chips is on the cards because of robust policy ecosystems, foreign direct investment, and effective infrastructure in Sanand and “Semicon City” at Dholera. Gujarat will be one of the nodes of India’s semiconductor value chain by 2025–2026 because of the partnership of production giants like Micron, Tata Electronics, CG Power, Kaynes, NextGen, and Jabil.
Source By:- https://economictimes.indiatimes.com/industry/cons-products/electronics/chip-manufacturing-will-commence-soon-in-gujarat-cm-patel/articleshow/111862768.cms
