Daijiworld Media Network – Gandhinagar
Gandhinagar, Jul 5: Gujarat has attracted investments worth Rs 1.24 lakh crore across six major semiconductor projects approved under the India Semiconductor Mission (ISM), reinforcing its position as the country's leading semiconductor manufacturing hub.
Prime Minister Narendra Modi on Saturday inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, saying India was steadily building the entire electronics value chain, from components and products to semiconductors.
"I have been told that 200 million chips will be produced here every year. I am confident this target will be achieved soon. The Semicon India programme is gaining momentum. Step by step, brick by brick, and now chip by chip, we are moving forward. We have set a target of manufacturing 500 million chips annually, and I am confident this goal will also be achieved," Modi said.
According to Gujarat government officials, the six semiconductor projects are expected to generate more than 50,000 direct and indirect jobs while significantly boosting India's domestic semiconductor capabilities under the 'Make in India' and 'Aatmanirbhar Bharat' initiatives.
The six approved projects under the India Semiconductor Mission are Tata Electronics, Micron Technology, CG Power and Industrial Solutions, Kaynes Semicon, Suchi Semicon and Crystal Matrix.
Officials said Gujarat became the first state in the country to introduce a dedicated semiconductor policy offering comprehensive support for the sector, helping attract large-scale investments.
Among the projects, Micron Technology and Kaynes Semicon have already established operational OSAT facilities at Sanand GIDC after being inaugurated earlier this year.
Commercial production at CG Power and Industrial Solutions' OSAT facility commenced on Jul. 5, while Suchi Semicon's pilot OSAT plant in Surat is already operational. The company's full-scale OSAT facility has also received approval under the India Semiconductor Mission.
Union Electronics and Information Technology Minister Ashwini Vaishnaw said chips manufactured at the CG Semi plant would be used in automobiles, two-wheelers and industrial applications, besides being exported to Japan, the United States and Europe.
Officials said Tata Electronics is making rapid progress on its semiconductor fabrication plant at Dholera, which is expected to become India's first commercial semiconductor foundry and help reduce dependence on imported chips.
Crystal Matrix has also received approval to establish the country's first commercial mini- and micro-LED display fabrication and packaging facility at the Dholera Special Investment Region, with construction expected to begin shortly.
The state is also witnessing investments by several domestic and global companies supporting the semiconductor ecosystem, including Linde, Taiwan's TSMT, Japan's TNSI, Fujifilm, Nippon Express, Germany's Infineon Technologies and Malaysia's Hotayi, creating an integrated manufacturing cluster.
Officials said Gujarat's Electronics Policy, aligned with the Centre's Scheme for Promotion of Electronic Components and Semiconductors (SPECS), supports the entire semiconductor value chain, including fabrication, packaging, testing, equipment and specialised materials.
The Union Finance Ministry has also approved a proposed outlay of Rs 1.25 lakh crore under ISM 2.0, which is expected to be placed before the Union Cabinet. The expanded programme aims to strengthen financial incentives and accelerate semiconductor manufacturing across the country.
According to officials, the combined support from the Centre and the Gujarat government is expected to reduce India's dependence on semiconductor imports, strengthen its position in the global chip supply chain and establish Gujarat as a globally competitive semiconductor manufacturing destination.