The Department of Science and Technology, under the Gujarat government, has put forth a significant proposal requesting a grant of ₹40,783 crore from the Government of India (GoI) to advance the semiconductor industry in Dholera Special Investment Region (SIR) and Sanand near Ahmedabad over the next six years.
Mona Khandhar, Principal Secretary of the Science and Technology Department, highlighted that the state’s vision is to create a robust and sustainable semiconductor and electronics ecosystem within these key regions. She noted, “Our objective is to establish a thriving semiconductor and electronics hub in Sanand and Dholera SIR over the coming years.”
Gujarat Government Seeks Rs 40,783 Cr Grants
Gujarat has emerged as a pivotal player in India’s semiconductor landscape, securing four out of the five semiconductor facilities approved by the GoI under the Semicon India program. A semiconductor packaging cluster is currently under development at GIDC Sanand, with prominent industry players such as Micron Technology Inc, CG Semi, and Kaynes Semicon spearheading major projects. Additionally, India’s first commercial semiconductor fabrication unit is being developed in Dholera SIR by Tata Electronics Pvt. Ltd.
The government’s proactive approach includes ongoing discussions with various ecosystem partners and potential project proponents aiming to establish manufacturing units in Gujarat. These initiatives present a unique opportunity to position the state as a key participant in the global semiconductor supply chain by nurturing a strong ecosystem of suppliers.
Gujarat Seeks Massive ₹40,783 Crore Grant from Central Government for Semiconductor Development in Sanand and Dholera SIR. pic.twitter.com/vubTVAl3q7
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Khandhar emphasized the critical need for extensive industrial infrastructure upgrades, encompassing utilities, logistics, and security systems, to align with international standards. The development of a comprehensive supplier network is equally important to bolster the semiconductor sector, necessitating collaboration among diverse stakeholders. Workforce training also poses a considerable challenge, requiring additional investment.
She further elaborated on the strategic benefits of specialized manufacturing clusters in Sanand and Dholera, which offer ready-to-use utilities, enabling businesses to scale efficiently. The semiconductor sector’s growth is expected to significantly boost GDP and regional economic development. Integration into the global semiconductor supply chain will enhance trade and foster international partnerships. Moreover, robust security and logistics frameworks are vital to ensure safe and efficient operations.
Positioning Gujarat as a prominent semiconductor export hub will enhance its global trade footprint. To realize these ambitions, the projected investment requirement stands at ₹40,783 crore over the next six years. The state has formally sought special financial assistance from the National Finance Commission and the Government of India to meet this funding need.
