State-Level Thrust, Policy Framework Give Momentum To India's Semiconductor Push

The Centre has been aggressively pushing to position India as the next semiconductor manufacturing hub. As part of the plan, Gujarat's Dholera will soon turn into a global ‘Semicon City’

Chip Manufacturing, Semiconductor Market, Semiconductors, Union Budget, Ashwini Vaishnaw, WEF

Amid the ongoing India AI Impact Summit 2026 in New Delhi, the government has started firming up plans to push Semiconductor Mission 2.0 with the aim of grabbing global attention. The Centre, which aims to double the number of projects in the sector by 2030 and expand the semiconductor market to $100–$110 billion, will now go on an aggressive drive to position India as the next semiconductor manufacturing hub. As part of the plan, Gujarat's Dholera will soon turn into a global ‘Semicon City’.

Prime Minister Narendra Modi will visit Sanand, Gujarat, on February 28 to inaugurate the Semiconductor Assembly and Test Manufacturing (ATMP) facility, which will be made operational to assemble, test, and package DRAM and NAND memory chips.

During his recent visit to Gujarat, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said that production at four semiconductor plants in the State will begin shortly. As per the Centre’s long-term strategy, Dholera is being developed as India’s primary semiconductor manufacturing hub. The Chairman of CG Power noted that chips manufactured in Gujarat will mark a major step toward India’s technological self-reliance.

Major Semiconductor Projects

At present, 10 semiconductor projects have been approved across States. While Gujarat, Tamil Nadu, and Karnataka have been leading this mission, Odisha and Uttar Pradesh have also joined the list. 

With India’s role expanding in the global semiconductor ecosystem, the Gujarat government has accelerated plans to develop Dholera as a dedicated ‘Semicon City’. Additionally, land has been reserved in the Sanand industrial area near Ahmedabad for companies interested in setting up semiconductor projects.

Semicon India Mission

Under the combined framework of Semicon India Mission and Gujarat’s Semiconductor Policy, four projects have reached the production-ready stage, including Micron’s Sanand plant.

Traditionally, the global semiconductor industry has been dominated by Taiwan, Japan, China, and the US, with India importing integrated circuits, chips, and amplifiers from these countries. The global semiconductor market has already reached $600 billion, and is expected to cross $1 trillion in the coming years, with India poised to play a significant role in this expansion.

Semiconductor Policy

A senior official from the Department of Science and Technology (DST) stated that Gujarat has implemented its Semiconductor Policy (2022–27), offering multiple incentives to attract investors. Developing Dholera as a Semicon City remains the core objective. The policy is expected to generate around 2 lakh jobs in Gujarat over the next five years.

Several domestic and international semiconductor assembly, testing, and packaging (ATP) plants are currently under construction in Sanand and Dholera. Ahead of the ‘Semicon India’ seminar scheduled in New Delhi from September 17 to 19, Gujarat is also preparing to host its own State-level, semiconductor-focused seminar to showcase investment opportunities.

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