State to focus on building social infra around semicon units: Gujarat CM

The country has so far attracted investment worth $18 billion under the first phase of ISM, he said

With four out of the five semiconductor plants being set up in India being constructed at Dholera in Gujarat, the state will now focus on building social infrastructure such as hospitals, schools, cafeteria, food courts, and other such buildings around industrial areas, Chief Minister Bhupen Patel said on Wednesday.

 

Speaking at the India Electronics and Semiconductor Association (IESA) Vision Summit 2025 here, Patel said it was due to the state’s lead in announcing an electronics and semiconductor manufacturing policy that four out of the five semiconductor plants being set up in India were being constructed at Dholera.

 

Earlier in the day, India Semiconductor Mission’s (ISM’s) Chief Executive Officer (CEO) Sushil Pal said semiconductor manufacturing alone could constitute up to 25 per cent, or $100 billion, of the total target of achieving $500 billion in semicon and electronics manufacturing by 2030-31.

   

“Electronics manufacturing forms the most important segment of manufacturing because of its market size, growth rate, high potential employability, and because it is the most traded commodity globally,” Pal said, adding that the country had so far attracted $18 billion investment under the first phase of ISM.

 

The first phase of ISM, okayed by the Union Cabinet in December 2021, has so far seen approvals for four chip packaging facilities and one chip manufacturing facility. The Rs 76,000 crore mission aims to set up from scratch a complete semiconductor chip manufacturing and packaging capability in the country.

 

Micron, which is headquartered in the US, was the first company to receive government approval to set up a chip packaging unit at Sanand in Gujarat. The assembly, testing, marking, and packaging (ATMP) plant will be constructed at a cost of $2.75 billion, which includes the investments to be made by the company as well as state and central governments’ sops and incentives.

 

The four-day event is also being attended by senior executives such as Tata Electronics MD & CEO Randhir Thakur, SEMI Chief Ajit Manocha, Powerchip Semiconductor Manufacturing Corporation (PSMC) President Martin Chu, among others.

 

Speaking at the inaugural session, Thakur announced that his company and PSMC would manufacture display fabs for Taiwanese company Himax from the Dholera facility.

 

SEMI chief Manocha said the semiconductor industry was at a critical juncture due to unprecedented supply chain disruptions, geopolitical issues and uncertainties, which presented India with a once-in-a-lifetime opportunity.