Gujarat completed five years of Chief Minister Bhupendra Patel’s tenure on September 13, with the semiconductor sector emerging as a prominent marker of the state’s development strategy. The government says the state is moving towards becoming a leading semiconductor hub while contributing to Prime Minister Narendra Modi’s vision of a reliable Indian presence in the global semiconductor supply chain.
Semiconductor investments and infrastructure
Gujarat has attracted more than US$13.66 billion in semiconductor investments. Six of the 12 semiconductor projects approved by the Government of India are located in the state. The projects span manufacturing, assembly, testing, packaging, design and research, creating a broader ecosystem rather than focusing on a single segment.
Sanand and Dholera are developing as the principal semiconductor centres. Micron Technology’s ATMP facility for DRAM and NAND memory chips is already operational at commercial scale in Sanand. OSAT facilities by CG Power, Renesas and Stars Microelectronics, along with Kaynes Semicon’s chip packaging-based OSAT facility, are also operational there.
Dholera is witnessing construction of Tata Electronics’ commercial semiconductor fab, which will manufacture CMOS logic chips using 110 to 28-nanometre process nodes. Crystal Matrix is developing a commercial mini and micro-LED display fabrication and packaging unit in Dholera, while Suchi Semicon is expanding its Surat operations into a full-fledged OSAT facility.
The Dholera Special Investment Region is equipped with large land parcels, reliable power and water, plug-and-play facilities and connectivity to ports, airports, expressways and the Delhi-Mumbai Industrial Corridor.
Policy support and skilled workforce
Gujarat has announced sector-specific incentives, including 40% additional capital investment assistance over Central Government CAPEX support, a 75% subsidy on the first 200 acres required for a FAB project, full reimbursement of stamp duty and registration fees, and a Rs. 2 per unit power tariff subsidy for 10 years.
Alongside investment, the state is building talent and research capacity. PDEU, with Micron Technology, is developing an ATMP training centre. GTU is establishing a ChipIN extension centre and Centre of Excellence for VLSI and chip design training. Dholera ITI has launched India’s first UHP welding training programme for the semiconductor industry, while IIT Gandhinagar has established the SAMARTH centre for advanced semiconductor manufacturing research and training with MeitY and DST Gujarat.
The Gujarat government says the combined focus on investment, infrastructure, incentives, skills and research is strengthening Gujarat’s role in India’s technology-driven development. The strategy also supports jobs, innovation, research and long-term industrial competitiveness across Gujarat in future.
