Gujarat's semiconductor policy setting stage in technology world: CM Patel

According to the state government, chip maker Micron Technology's decision to set up a $2.75-billion plant at Sanand near Ahmedabad indicates that Gujarat's semiconductor policy is bearing fruit

The 'Gujarat Semiconductor Policy' will help realise the state's commitment for a self-reliant India and Gujarat, Chief Minister Bhupendra Patel has said.

The policy is setting the stage for a future in the world of technology and manufacturing, and helping Gujarat transform itself into a semiconductor powerhouse, he said.

According to the state government, chip maker Micron Technology's decision to set up a $2.75-billion plant at Sanand near Ahmedabad indicates that Gujarat's dedicated semiconductor policy is bearing fruit and attracting global players.

Under the policy, the state government will set up 'Dholera Semicon City' near Ahmedabad where eligible projects will be given subsidies for setting up manufacturing units, it said ahead of the Vibrant Gujarat Global Summit (VGGS) to be held in Gandhinagar next month.

The summit is a forum for business networking, knowledge sharing and strategic partnerships for inclusive growth and sustainable development.

In June this year, the Gujarat government signed a Memorandum of Understanding (MoU) with the Micron Technology for setting up a semiconductor assembly and test facility at Sanand.

"With the prime minister's guidance, Gujarat has emerged as a policy-driven state. Taking this tradition further, we have implemented the country's first dedicated semiconductor policy. Our commitment for 'Aatmanirbhar Bharat' and 'Aatmanirbhar Gujarat' will be realised by this policy," CM Patel has said.

In July last year, Gujarat announced a dedicated policy to draw new investments in the semiconductor sector by offering incentives and subsidies to start operations in the state, and will remain in force till 2027.

The Dholera Special Investment Region (SIR) is set to host the ambitious 'Semicon City', spanning 5,000-10,000 acres and generating a massive two lakh jobs over the next five years by attracting semiconductor fabrication units, display fabrication units, silicon photonics, and semiconductor assembly, testing, marking, and packaging facilities, as per the state government.

Speaking at a startup event recently on semiconductor policy investment, Union Minister of State for Skill Development and Entrepreneurship Rajeev Chandrasekhar said, "(Prime Minister) Narendra Modi ji in January 2023 enacted a policy. We have these big units and plants like Micron coming up in Gujarat."

"There are over 30 design startups that have come up. We are going to set up a new Indian semiconductor centre for research," he said.

The policy has been designed in line with the Centre's 'India Semiconductor Mission' to attract and facilitate new projects in the sector, the government said in a release.

To encourage investments, a 75 per cent subsidy is offered on the purchase of first 200 acres required for setting up manufacturing units, with additional land provided at 50 per cent subsidy, the state government said.

Eligible projects under this policy enjoy a power tariff subsidy of Rs 2 per unit for a decade and good quality water at a rate of Rs 12 per cubic metre for the first five years, with additional incentives for projects with significant foreign direct investment or those relocating from overseas locations, it said.