Gujarat’s Semiconductor Policy 2022-2027: A Step Towards India’s Self-Reliance
In line with Prime Minister Narendra Modi’s vision for a developed India by 2047, the Gujarat government, led by Chief Minister Bhupendra Patel, has introduced the ‘Gujarat Semiconductor Policy 2022-2027’. This policy aims to boost the state’s leadership in semiconductor self-reliance.
Key Developments
The Gujarat State Electronics Mission has been established to implement this policy effectively. Under CM Patel’s leadership, the foundation stone for Micron’s semiconductor ATMP plant was laid in Sanand, with an investment of over Rs22,500 crore.
In Dholera’s ‘Semicon City’, Tata Electronics and Taiwan’s PSMC are setting up India’s first AI-enabled semiconductor fabrication facility, investing over Rs91,000 crore. Additionally, CG Power and Renesas will establish an OSAT facility in Sanand GIDC, with a project investment of over Rs7,500 crore.
Kaynes Semicon will also set up a facility in Sanand, expected to produce 6 million chips daily, with an investment of Rs3,300 crore.
Economic Impact
These investments are expected to create high-skilled job opportunities and reduce India’s reliance on imported semiconductor chips. The policy offers incentives like a 100% refund of stamp duty, a Rs2 per unit electricity subsidy, and a Rs12 per cubic metre water rate.
Incentives and Support
The Gujarat government provides a 40% financial assistance in addition to the central government’s support. Dholera is being developed as a Greenfield Smart City, with a 75% subsidy on land acquisition for fabrication projects.
National Context
The Government of India launched the ‘India Semiconductor Mission’ in 2021, with a budget of Rs76,000 crore, to meet the growing demand for semiconductors. India’s semiconductor market is projected to grow from $15 billion in 2020 to over $63 billion by 2026.
Doubts Revealed
Semiconductor -: Semiconductors are materials used to make electronic chips that power devices like computers and smartphones. They are very important for technology.
Self-Reliance -: Self-reliance means being able to do things on your own without needing help from others. In this context, it means India wants to make its own semiconductors instead of buying them from other countries.
Micron’s ATMP plant -: Micron is a company that makes memory chips. ATMP stands for Assembly, Testing, Marking, and Packaging, which are steps in making semiconductor chips ready for use.
AI-enabled facility -: AI-enabled means using Artificial Intelligence, which is smart computer technology that can learn and make decisions. This facility will use AI to help make semiconductors.
Stamp Duty -: Stamp duty is a tax you pay when you buy property or land. A 100% refund means the government will give back all the money paid for this tax.
Electricity Subsidy -: An electricity subsidy is when the government helps pay part of the electricity bill to make it cheaper for companies.
Import Reliance -: Import reliance means depending on other countries to buy things you need. Reducing it means making those things yourself so you don’t have to buy them from others.
53,000 jobs -: This means that the new semiconductor projects in Gujarat are expected to create 53,000 new job opportunities for people.
Gujarat -: Gujarat is a state in western India known for its strong economy and industries. It is taking steps to become a leader in technology.
