Gujarat's Four Semiconductor Projects to Generate 53,000 Jobs: Government.

The Gujarat government announced recently that four major semiconductor projects, with a combined investment of ₹1.24 lakh crore, are set to create 53,000 new jobs under the state’s Semiconductor Policy 2022-2027. According to a report from the Science and Technology department, the policy has successfully attracted four key companies to establish semiconductor manufacturing projects in the state.

Among the developments, Micron recently laid the foundation for an advanced ATMP (Assembly, Testing, Marking, and Packaging) plant in Sanand, representing an investment of ₹22,500 crore. In Dholera's emerging 'Semicon City,' Tata Electronics Private Limited (TEPL) and Taiwan’s PSMC are collaborating to build India’s first AI-enabled semiconductor fabrication facility, with an investment of over ₹91,000 crore. CG Power and Renesas will also establish an OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand with a ₹7,500 crore investment. Additionally, Kaynes Semicon is launching a facility in Sanand aimed at producing around 60 lakh chips daily with an investment of ₹3,300 crore.

These projects follow the high-profile Vedanta-Foxconn venture initially proposed in Dholera in September 2022, which would have represented a ₹1.54 lakh crore investment. However, the project was canceled after the partners withdrew.

The Gujarat government remains optimistic about the sector, emphasizing that these state-of-the-art facilities will reduce India’s reliance on imported chips and drive job creation in sectors such as automotive, electronics, and telecommunications. The state is also accelerating the development of Dholera as a premier ‘Semicon City’ with a robust package of incentives, including up to a 75% subsidy on land acquisition and a 40% capital expenditure boost, on top of federal support.

Under the policy, companies benefit from a 100% refund on stamp duty and registration fees, along with subsidies on high-quality electricity and water supply. This initiative places Gujarat at the forefront of India’s semiconductor ambitions, setting the stage for the state to become a major semiconductor manufacturing hub.

HBL