Gujarat Semiconductor Policy 2022-2027

The 2022–2027 Gujarat Semiconductor Policy was introduced by the Gujarat government. This project is in line with Prime Minister Narendra Modi's goal of an advanced India by 2047. Its goal is to make the state more self-sufficient in semiconductors. The head of this ambitious strategy is Chief Minister Bhupendra Patel. Among the recent achievements are significant investments in semiconductor projects.

An Overview of Gujarat Semiconductor Policy

• Provides incentives in the form of subsidies on semiconductor investments where the Maharashtra government offers a subsidy of 40 percent on capital investments required for setting up semiconductor factories; refund of stamp duty and registration fees; subsidy to electricity at the rate of Rs. 2 per unit consumed; and water usage subsidy at MB grey Rs. 12 per cubic meter of water consumed.
• Encourages land procurement financial subsidies up to 75% for units in Dholera. Prime Investment and Schemes in Gujarat: Micron is planning to set up an advanced semiconductor assembly, which will be more than Rs 22,500 crore in Sanand.
• Tata Electronics and Taiwan’s Powerchip are planning to build the first smart semiconductor manufacturing unit in Gujarat-Dholera for over Rs 91,000 crore.
• CG Power and Renesas are in the process of setting up their Outsourced Semiconductor Assembly and Test plant in Sanand, which will cost more than Rs 7,500 crore.
• India’s Kaynes Semicon will manufacture about 6 million chips per day and will invest about Rs 3,300 crore.

Environmental significance, employment, and economic growth 

• Thousands of high-skill employment opportunities must be created, and total planned investment worth Rs 1.24 lakh crore is envisioned by projects.

Location Advantage of Dholera and Semicon City

• Presently, Dholera is also understood as India’s first Greenfield Smart City under planning and development as the growth hub for semiconductor businesses.

Future of India’s Semiconductor Market

• The Gujarat Semiconductor Policy helps the central government to meet its goal of making India an electronic hardware manufacturing hub.