Gujarat becomes India's first state to implement a dedicated semiconductor policy

Tags: Science and Technology

Gujarat becomes India's first state to implement a dedicated semiconductor policy

 Why in news?

• CG Power and Renesas will set up a state-of-the-art Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, a project totaling morethan Rs 7,500 crore.
• The government has also approvedKeynes Semicon’s facility in Sanand, anticipated to produce around 6 million chips daily with an investment of Rs 3,300 crore. 

Aim:

• ambitious policy aims to solidify Gujarat’s position as a leader in semiconductor self-reliance, supported by the newly created ‘Gujarat State Electronics Mission.’

Key features:

• Enhancing central government support for semiconductor units, the state offers additional financial assistance,including a 40% subsidyfor capital expenditure. 
• The policy further offers semiconductor businesses incentives, such as a 100% one-time refund on stamp dutyand registration fees, a Rs 2 per unit electricity subsidy, and a Rs 12 per cubic-metre rate for water.
•  The policy also includes up to 75% land acquisition subsidy for semiconductor units in Dholera, which is being developed as India’s first Greenfield Smart City.
• This region, envisioned as‘Semicon City,’ is a strategic hub aimed at attracting semiconductor investments and fostering industry growth.

Benefits:

• These projects, supported by the Gujarat Semiconductor Policy, are set to generate thousands of high-skilled jobs across the state.
• This state-level initiative complements the central government’s‘India Semiconductor Mission,’ launched in 2021 with a budget of Rs 76,000 croreto boost domestic semiconductor production.
•  India’s semiconductor market,valued at $15 billion in 2020, is projected to surpass $63 billion 2026.
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