The policy provides 75% subsidy on the first 200 acres of land required for a fab project and access to potable water at a subsidised rate.
With a vision to become a global centre for Electronics System Design and semiconductor production, Gujarat has become the first Indian state to introduce distinct policies for Electronics Manufacturing (2022-28) and Semiconductor Manufacturing (2022-27), aligning with the India Semiconductor Mission (ISM). The Gujarat Semiconductor Policy (2022-27) is tailored to create over 200,000 jobs within five years.
Key aspects of the policy include guiding investments under the ISM to Gujarat. Eligible projects including those under various Government of India (GoI) schemes for setting up semiconductor and display fabs, will receive state-level support. This includes additional capital assistance from the State Government, which will be 40% of the capex assistance provided by the Government of India, subject to certain conditions.
The policy offers substantial incentives to attract eligible projects. It includes a 75% subsidy on the first 200 acres of land required for a fab project and access to potable water at a subsidised rate. Additionally, eligible projects will benefit from a power tariff subsidy of Rs 2 per unit for 10 years from the commencement of operations. The state government may also facilitate the construction of essential infrastructure like clean rooms and common facilities centres.
Gujarat Semiconductor and Electronics Mission (GSEM) aims to promote the semiconductor and display industry by developing trade linkages and establishing a supply chain encompassing raw materials, specialty chemicals, gases, and manufacturing equipment. For overseeing and approving these projects, the State Government will set up a High-Powered Committee (HPC) for projects with proposed investments of Rs. 1,000 Cr or more and a State Level Empowered Committee (SLEC) for smaller projects.
Gujarat’s focused strategy in key sectors like semiconductors and electronics manufacturing is poised to significantly impact the global supply chain realignment and enhance India’s economic stature. The entry of Micron Technologies into India via Gujarat highlights the state’s developmental progress.