With the Union finance minister announcing the India Semiconductor Mission (ISM) 2.0 with a Rs 40,000 crore outlay, experts are confident that the move will further develop the semiconductor industry in Gujarat, which is already home to key players with an investment of at least Rs 1.25 lakh crore and India’s first Semicon City in Dholera.Sudhir Naik, chairman, India Electronic and Semiconductor Association (IESA) (west zone), said, “The Budget proposals will reinforce India’s transition from policy intent to large-scale execution. The provisions will enable more investments from semiconductor supplier companies coming into Gujarat. The state is well placed to gain because of its early investments in infrastructure, power reliability, logistics and single-window clearances.”According to industry estimates, each semiconductor fab typically leads to the creation of five to seven ancillary units across chemicals, gases, precision engineering and logistics, generating thousands of direct and indirect jobs.“The arrival of allied industries will be key for the growth of the industry because it will ensure reliable supply of key components and also create new employment opportunities here,” he added. A top official of a semiconductor company said, “Some of our vendors are in the process of setting up a base in Gujarat, and the announcement will boost the confidence in the sector.” Gujarat already hosts India’s first planned semiconductor manufacturing cluster at Dholera, where Tata Electronics is setting up a semiconductor fabrication facility in partnership with Taiwan’s PSMC with an investment of over Rs 90,000 crore. The state also attracted major OSAT (outsourced semiconductor assembly and testing) projects, including Micron Technology.With semiconductor demand projected to grow sharply across automotive, electronics, defence and renewable energy sectors, industry players believe Gujarat could anchor a significant share of India’s semiconductor value chain over the next decade. tnn
