Semiconductor Policy
News
Gujarat launched India’s first Semiconductor Policy (2022-2027)
Dholera is being developed as India’s first Greenfield Smart City and the semiconductor hub, receiving up to 75% land subsidy for semiconductor units. It will host India’s first AI-enabled fabrication facility, strengthening Gujarat’s semiconductor ecosystem.
Gujarat launched India’s first Semiconductor Policy (2022-2027)
2022-2027
Policy Duration
75%
Land Subsidy at Dholera
Rs 1.24 L Cr
Total Investment Attracted
| Aspect | Details |
|---|---|
| Policy | Gujarat Semiconductor Policy 2022-2027 aims to make Gujarat a leader in semiconductor self-reliance. |
| Vision Alignment | Aligns with PM Modi’s vision for Viksit Bharat@2047. |
| Dholera’s Role | - Dholera is being developed as India’s first Greenfield Smart City, envisioned as "Semicon City." |
| - Strategic hub for attracting semiconductor investments and fostering industry growth. | |
| Major Project in Dholera | - Tata Electronics Private Limited (TEPL) and Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) |
| - Establishing India’s first AI-enabled semiconductor fabrication facility. | |
| - Investment: Over Rs 91,000 crore. | |
| Additional Incentives for Dholera | - Up to 75% land acquisition subsidy for semiconductor units. |
| Other Key Projects in Gujarat | - Micron’s ATMP plant in Sanand: Rs 22,500 crore. |
| - CG Power and Renesas OSAT facility in Sanand: Rs 7,500 crore. | |
| - Kaynes Semicon’s chip production facility in Sanand: Rs 3,300 crore. | |
| Investment Attracted | Total commitment: Rs 1.24 lakh crore from four major semiconductor companies. |
| Job Creation | Expected to generate around 53,000 high-skilled jobs across the state. |
| Financial Incentives | - 40% capital expenditure subsidy. |
| - 100% refund on stamp duty and registration fees. | |
| - Rs 2 per unit electricity subsidy and Rs 12 per cubic metre for water. | |
| Complementary Central Mission | Aligns with India Semiconductor Mission (2021) with a budget of Rs 76,000 crore. |
| Market Growth Projection | India’s semiconductor market projected to grow from $15 billion (2020) to over $63 billion by 2026. |
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