Gujarat's Semiconductor Boom: Rs 15,000 Crore Investment to Build Global Value Chain
Gujarat is set to transform into a semiconductor powerhouse with a massive Rs 15,000 crore investment push unveiled at the Gujarat SemiConnect IESA Vision Summit 2025. Chief Minister Bhupendra Patel, while inaugurating the summit at the Mahatma Mandir Exhibition and Convention Centre in Gandhinagar, outlined an ambitious vision to establish the state as a global leader in semiconductor manufacturing.
GOVERNMENT ANNOUNCEMENT
3/6/20252 min read
Gujarat's Semiconductor Boom: Rs 15,000 Crore Investment to Build Global Value Chain
Major Investments and Strategic MoUs
The summit saw the signing of 10 strategic Memorandums of Understanding (MoUs), reinforcing Gujarat’s commitment to a robust semiconductor ecosystem:
NextGen announced plans to invest Rs 10,000 crore in setting up a compound semiconductor fabrication and optoelectronics facility, collaborating with Hitachi and Solidlite for technical expertise.
Jabil Inc., a US-based manufacturing giant, committed Rs 1,000 crore to establish a silicon photonics manufacturing unit.
Tata Electronics, already engaged in semiconductor fabrication in Dholera's Semicon City, signed a tripartite agreement with Taiwan’s PSMC and HiMax Technologies to launch a semiconductor display unit in Dholera.
Taiwan Surface Mounting Technology (TSMT) pledged Rs 500 crore to set up a new Electronics Manufacturing Service (EMS) facility, expected to generate around 1,000 jobs.
Gujarat’s Role in the Global Semiconductor Industry
CM Bhupendra Patel emphasized the crucial role of semiconductors in modern industrial development. “Gujarat is the first state in India to launch a dedicated semiconductor policy, making it a preferred destination for multinational companies. We are on track to become an integral part of the global semiconductor demand-supply chain,” he stated.
Furthering Gujarat’s semiconductor ambitions, the CM virtually inaugurated the groundbreaking ceremony for Kaynes Technology’s upcoming semiconductor plant in Sanand. With an investment of Rs 3,300 crore, the plant is expected to commence production by June 2025, with the full manufacturing line operational by January 2026.
Dholera: The Future Hub for Semiconductor Manufacturing
Officials highlighted the state’s efforts to make Dholera a plug-and-play destination for the semiconductor industry. The government has pledged 100 million liters of water per day to support industrial needs, ensuring seamless infrastructure for investors.
CEO of Dholera SIR, Kuldeep Arya, conducted an investor session, emphasizing the state’s commitment to attracting both primary investors and peripheral industries to the semiconductor clusters in Dholera and Sanand.
Strengthening Gujarat’s Semiconductor Ecosystem
Jabil Inc.’s Rs 1,000 crore investment will enhance Gujarat’s silicon photonics sector, strengthening India’s semiconductor supply chain.
Tata Electronics’ new display manufacturing unit in Dholera, in collaboration with PSMC and HiMax, cements its position across all major semiconductor segments. Tata Electronics is already investing Rs 91,000 crore in Gujarat for semiconductor fabrication, marking a significant milestone in India's chip manufacturing ambitions.
With these transformative investments and strategic partnerships, Gujarat is poised to emerge as a global semiconductor hub, driving innovation, job creation, and technological advancements in India’s semiconductor sector.