The state government of Gujarat claims that the decision by chip manufacturer Micron Technology to establish a $2.75 billion factory in Sanand, close to Ahmedabad, is evidence that the state’s dedicated semiconductor strategy is having an impact and drawing in international investors.
Gujarat unveiled a special strategy in July of last year to entice new investments in the semiconductor industry by providing incentives and subsidies to establish businesses in the region.
Prime Minister Bhupendra Patel’s “Gujarat Semiconductor Policy” will go into effect in 2027. According to a press statement from the government, the policy was created following the “India Semiconductor Mission” of the Center to draw in and support new ventures in the industry.
Following the program, the state government announced in advance of the state’s Vibrant Gujarat Global Investor Summit next month that it would establish “Dholera Semicon City” close to Ahmedabad, where qualified projects will get subsidies for establishing manufacturing facilities.
According to the state government, qualified projects at the site would get a 75% subsidy on the acquisition of the first 200 acres of land for the establishment of industrial units.
For the first five years, high-quality water would be supplied to the qualified projects for a cost of Rs 12 per cubic meter, according to the statement. In addition, it said that for the first ten years of production, they would get a power rate discount of Rs 2 per unit and that these projects would not be required to pay any energy duty.
The Gujarat government and computer storage chip manufacturer Micron inked a Memorandum of Understanding in June of this year to establish a $2.75 billion semiconductor assembly and testing plant in the Ahmedabad district of Sanand.
At one point, Prime Minister Narendra Modi highlighted India’s potential in the field, saying, “India is ticking all the checkboxes to become a great energy conductor for the semiconductor industry.“
According to the release, the growing dependence on semiconductors has turned into the cornerstone of worldwide technical breakthroughs in a variety of fields, including computing, communication, and healthcare.
The impact of the Vibrant Gujarat Worldwide Summit in propelling the state’s semiconductor sector to a worldwide level was recently emphasized by CM Patel.
“PM Modi often asserts that Gujarat embodies the fusion of industry and entrepreneurship, trade and tradition, and commerce and culture.” The PM remarked, “With the Vibrant Gujarat Global Summit, he has given this image of Gujarat a global platform.“
Global companies are already eager to invest in Gujarat now that the state has implemented its new semiconductor strategy, according to the statement.
The CEO of Micron Technologies, Sanjay Mehrotra, previously discussed the Gujarat plant’s employment potential. “We estimate that our project here in Gujarat will create nearly 5,000 direct jobs plus an additional 15,000 indirect jobs in the community over the coming years,” he had said.
If business executives are to be believed, Gujarat is quickly going to become the global leader in chip manufacturing.
