Four Semiconductor projects that have promised investments worth ₹1.24 lakh crore in Gujarat will also create 53,000 new employment opportunities, the state government stated Thursday.

Quoting a report from the Science and Technology department, the State government stated the Gujarat Semiconductor Policy 2022-2027 has “attracted significant investments, with four leading semiconductor companies set to invest a total of ₹1.24 lakh crore in new projects. These projects are expected to create approximately 53,000 new job opportunities.”

The statement from the government pointed out that the foundation stone for Micron’s advanced semiconductor ATMP plant was laid in Sanand, marking an investment of over ₹22,500 crore. Similarly at Dholera’s ‘Semicon City’ in Ahmedabad district, Tata Electronics Private Limited (TEPL) and Taiwan’s PSMC are set to establish India’s first commercial Artificial Intelligence (AI)-enabled semiconductor fabrication facility, with an investment of over ₹91,000 crore, while CG Power and Renesas will set up a cutting-edge semiconductor OSAT facility in Sanand GIDC, supported by a total project investment of over ₹7,500 crore.

Additionally, the state government has approved the establishment of Kaynes Semicon’s facility in Sanand, projected to produce around 60 lakhs chips daily with an investment of ₹3,300 crore.

Vedanta-Foxconn semiconductor venture worth an estimated ₹1.54 lakh crore, was the first semiconductor project in Gujarat that grabbed a lot of eyeballs in September 2022. However, the project, intended to be set up in Dholera Special Investment Region (SIR), did not materialise, as the partners withdrew from the project. 

Despite the initial hiccup, the state government has been bullish about the semiconductor sector. “Substantial investments by semiconductor units in Gujarat are set to generate a wave of high-skilled job opportunities across the state. These state-of-the-art facilities will play a pivotal role in reducing India’s dependence on imported semiconductor chips while also catalyzing job creation in critical downstream sectors such as automotive, electronics, medical equipment, and telecommunications,” the statement from the State government stated.

To accelerate the development of Dholera as a premier ‘Semicon City’, the Gujarat government is offering a range of attractive incentives for semiconductor units setting up operations in the region. This includes a generous subsidy of up to 75 per cent on land acquisition for fabrication projects. In addition to the capital expenditure assistance provided by the Government of India for semiconductor and display fabrication units, the state government enhances this support with an additional 40 per cent financial assistance. As a part of the Gujarat Semiconductor Policy, the state offers a 100 per cent one-time refund of stamp duty and registration fees.

Additionally, the policy includes a range of incentives such as a ₹2 per unit subsidy on high-quality electricity supply at globally competitive rates, ₹12 per cubic meter for quality water and exemption from electricity duty.

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