Gujarat’s Chief Minister has launched a dedicated semiconductor policy for the state of Gujarat, “Gujarat Semiconductor Policy 2022-2027”, marking a milestone by any Indian state so far to do so.

Objective 
With an objective to advance the Honourable Prime Miniter of India’s “Viksit Bharat@2047 Vision”, the policy has been launched enabling the establishment of the “Gujarat State Electronics Mission”, a dedicated institution, which would lead the state in ensuring semiconductor self-reliance. 

Policy takeaways 
The major takeaways of the policy are: 

1. 100% one-time refund of the stamp duty and registration fees. 
2. A subsidy of Rs 2/unit and Rs 12/cubic meter on high-quality electricity & Quality water, respectively. 
3. A subsidy of 75% on land acquisition for fabrication units. 
4. Full exemption from Electricity duty. 

Current Semiconductor investments in Gujarat 
Gujarat’s Dholera is being established as a “Semicon city” with Tata Electronics and Taiwan’s PSMC all set to establish an AI-powered fabrication unit worth over Rs 91,000 crores. Moreover, CG Power & Reneseas will be setting up an Outsourced Semiconductor Assembly & Test (OSAT) unit in GIDC, Sanand.

Gujarat's chief minister has laid the foundation stone for   Micron’s advanced Semiconductor ATMP plant with an investment of over Rs 22,500 Crore. 

Impact 
So far, the investments counted upon above are all significant in terms of generating revenue as well as making India self-reliant in chip production for various industries ranging from AI to automobiles and equipment. The policy with all its offerings holds immense potential to charge up investments in the semiconductor arena in Gujarat creating an overall impact on India’s semiconductor industry. 

This would also be highly encouraging in terms of employment generation and serving a large population of chip designers and innovators that India has. So far, with the investment of Rs 1.24  Lakh Crore, the industry is expected to come up with 53,000 jobs across various profiles, as per the Science & Technology Department of the state.  

Also Read: UP Government Embraces HCL’s and Tarq’s Proposal to Establish Semiconductor Fab Units

India Semiconductor Mission, 2021
The India Semiconductor Mission (ISM) has been established as an independent business division within the Digital India Corporation. With full administrative and financial authority, ISM is responsible for driving the growth of India's semiconductor ecosystem, focusing on manufacturing, packaging, and design. Serving as the nodal agency for schemes under the Semicon India Programme, ISM is actively receiving and evaluating applications. Additionally, ISM has been engaging with various stakeholders in the semiconductor and display sectors to attract investment to India.