Gujarat became the first state in India to introduce a dedicated semiconductor policy offering comprehensive support to the sector, laying the foundation for a rapidly expanding semiconductor ecosystem. The six projects approved under the India Semiconductor Mission include Tata Electronics, Micron Technology, CG Power & Industrial Solutions, Kaynes Semicon, Suchi Semicon, and Crystal Matrix, according to an official release.
Micron Technology and Kaynes Semicon have already established Outsourced Semiconductor Assembly and Test (OSAT) facilities at Sanand GIDC. The two facilities, inaugurated by Prime Minister Narendra Modi earlier this year, are now operational and represent a significant step toward expanding India's semiconductor manufacturing infrastructure.
The investments are aimed at enhancing the country's semiconductor manufacturing capabilities and reducing dependence on imports in line with the Central Government's vision of building a self-reliant India through the "Make in India" initiative.
According to the release, CG Semi will commence commercial production at its OSAT facility from July 5, marking another major milestone in Gujarat's semiconductor manufacturing ecosystem. Suchi Semicon's pilot OSAT plant is already operational in Surat, while its full-scale OSAT facility has also been approved under the India Semiconductor Mission.
Tata Electronics' semiconductor fabrication facility at Dholera is in an advanced stage of construction and is expected to become India's first commercial semiconductor foundry. Crystal Matrix has also secured approval under the mission to establish the country's first commercial mini and micro Light Emitting Diode display fabrication and packaging unit at the Dholera Special Investment Region, with construction expected to begin shortly.
Beyond the approved projects, Gujarat is witnessing the rapid development of a comprehensive semiconductor ecosystem through the expansion of supporting industries and allied infrastructure. Several global and domestic companies have either established operations in the state or announced investment plans, including Linde, Taiwan's TSMT, Japan's TNSI, Fujifilm, Nippon Express, Germany's Infineon Technologies, and Malaysia's Hotayi. Their presence is contributing to the development of an integrated semiconductor cluster capable of supporting large-scale fabrication and packaging activities.
The Gujarat Electronics Policy, aligned with the Government of India's Scheme for Promotion of Electronic Components and Semiconductors (SPECS), further strengthens the state's semiconductor ecosystem by supporting the entire manufacturing value chain. The policy covers component manufacturing, semiconductor fabrication, packaging and testing facilities, material suppliers, equipment providers, and manufacturers of ultra-high-purity gases and specialty chemicals essential for the industry.
Meanwhile, the Union Finance Ministry has recently approved an outlay of Rs 1.25 lakh crore for India Semiconductor Mission 2.0, which is expected to be placed before the Union Cabinet for final approval. The expanded financial support is expected to further strengthen India's semiconductor capabilities and accelerate the sector's growth nationwide.
Through financial incentives, infrastructure development, ease of doing business measures, ecosystem expansion, and transparent governance, Gujarat aims to establish itself as a globally competitive semiconductor manufacturing hub while making a significant contribution to the objectives of the National Semiconductor Mission and India's long-term technological self-reliance.
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