Gujarat Seeks ₹40,783 Crore to Develop Semiconductor Hub in Dholera SIR

The Government of Gujarat, through its Department of Science and Technology, has proposed an ambitious investment plan worth ₹40,783 crore to strengthen the semiconductor industry in key industrial regions including Dholera Special Investment Region (SIR) and Sanand near Ahmedabad. The proposal has been submitted to the Government of India with a request for special financial grants over a six-year period, reflecting Gujarat’s strategic push to position itself as a global semiconductor manufacturing hub.

According to senior officials, the state’s long-term objective is to create a robust, sustainable, and globally competitive semiconductor and electronics ecosystem. Gujarat has already emerged as a frontrunner under the Centre’s Semicon India Programme, with four out of the five semiconductor facilities approved nationwide being located within the state. This concentration of projects highlights Gujarat’s growing importance in India’s high-tech manufacturing landscape.

A major milestone in this journey is the establishment of India’s first commercial semiconductor fabrication unit at Dholera SIR, being developed by TATA Electronics Pvt. Ltd.. In parallel, a dedicated chip packaging and testing cluster is taking shape in GIDC Sanand, with large-scale investments from global and domestic players such as Micron Technology Inc., CG Semi, and Kaynes Semicon. These projects are expected to anchor India’s semiconductor value chain within Gujarat.

State officials have emphasised that the success of these mega projects depends not only on fabrication units, but also on the development of a strong supplier and support ecosystem. This includes significant investment in industrial infrastructure such as uninterrupted power and water supply, advanced logistics networks, secure transportation systems, and globally benchmarked industrial facilities. Coordinated efforts among multiple stakeholders are required to ensure that the ecosystem evolves in a timely and efficient manner.

Workforce development has also been identified as a critical challenge. The semiconductor sector requires a highly skilled talent pool across engineering, operations, and research domains. To address this, the Gujarat government plans to invest in specialised training programmes, academic–industry partnerships, and skill development initiatives that align with global semiconductor standards. These efforts are aimed at ensuring long-term sustainability and employment generation in the sector.

The proposed investment roadmap further envisions the creation of plug-and-play manufacturing clusters in Dholera and Sanand, enabling companies to scale operations rapidly. Over time, the semiconductor sector is expected to drive regional economic growth, contribute significantly to Gujarat’s GDP, and integrate the state more deeply into global semiconductor supply chains. The government believes that enhanced security, logistics efficiency, and export capabilities will position Gujarat as a key contributor to India’s semiconductor exports.