At the Gujarat SemiConnect Conference 2025, which opened at Mahatma Mandir, Chief Minister Bhupendra Patel claimed that Gujarat is the leading location for semiconductor manufacturing. During the three-day event, eight important Memorandums of Understanding (MoUs) worth more than ₹1.04 lakh crore were signed to strengthen the state's position in the electronics and semiconductor industry.
Gujarat Semiconductor Policy 2022-2027
Through its robust policies, the state has been actively supporting the manufacturing of semiconductors. In order to draw in investors, the Gujarat Semiconductor Policy 2022–2027 was implemented, providing simplified approvals, infrastructure assistance, and financial incentives. The state has designated industrial parks and special economic zones (SEZs) for the production of semiconductors under this policy.
"Gujarat has always been at the forefront of industrial development, and our semiconductor policy is designed to make the state a global hub for chip manufacturing," said Gujarat CM Bhupendra Patel during his address.
The Gujarat CM also announced that Gujarat had launched a Global Capability Center Policy to encourage AI, machine learning, analytics, and related industries. He also emphasized that the state's stable governance, skilled workforce, and strong infrastructure make it a natural choice for investors looking to establish semiconductor units.
The first 200 acres of land allocated for semiconductor projects are eligible for a 75% subsidy under the Gujarat Semiconductor Policy 2022–2027. This policy strengthens India's position in the global supply chain and reduces reliance on imports, which is in line with the Indian government's larger push for self-reliance in semiconductor production.
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Strategic MoUs Signed at the Gujarat SemiConnect 2025
By showcasing Gujarat's potential as a desirable travel destination, the three-day event aims to attract investments, stimulate capital inflow into the state's semiconductor industry, integrate regional businesses into global value chains, and strengthen the state's ability to innovate in the semiconductor sector.
A ₹91,526 crore financial support agreement (FSA) between Tata Electronics and the India Semiconductor Mission (ISM), a government effort by MeitY, was one of the key MoUs signed. The Financial Support Agreement was for a semiconductor fabrication unit in Dholera that would get funding from the central government.
The project was first revealed by the Tata Group at the 10th Vibrant Gujarat Global Summit in January 2024. N Chandrasekaran, the chairman of Tata Sons, characterised the semiconductor initiative as a strategic investment that would greatly advance India's technological capabilities and independence in chip manufacturing.
Tata Electronics also signed a 3-partite agreement with Taiwan’s PSMC and Taiwanese fabless semiconductor manufacturer Himax Technologies. With PSMC's assistance, the partnership will be essential to Tata Electronics's semiconductor chip manufacturing at Dholera.
Other notable MoUs signed include Taiwan Surface Mounting Technology (a Rs. 500 crore investment), Micron Technology, CANS, and Alpha & Omega Semiconductor Limited (AOS). NextGen is also setting up a ₹10,000 crore compound semiconductor and optoelectronics facility with support from Hitachi and Solidlight.
Gujarat’s proactive approach to promoting semiconductor manufacturing has positioned it as a preferred destination for investors. With a combination of industry-friendly policies, top-notch infrastructure, and a skilled workforce, the state is set to play a crucial role in India's semiconductor revolution.
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