Gujarat leads India's semiconductor revolution with two new chip projects

The newly approved projects include a Rs 3,068 crore investment by Crystal Matrix Limited at Dholera Special Investment Region and a Rs 868 crore investment by Suchi Semicon Private Limited (SSPL) in Surat.

The projects are expected to generate more than 2,230 high-technology jobs and thousands of indirect employment opportunities.

Reacting to the approvals, Modhwadia said Gujarat had emerged as the leading destination for semiconductor investment in the country.

"Out of the total 12 semiconductor projects approved under the India Semiconductor Mission in India, six projects have come to Gujarat, making the state the leading hub of activity in this sector," he said.

The minister said Gujarat had taken an early lead in the sector by becoming the first state in the country to announce a dedicated semiconductor policy.

He emphasised that under the leadership of Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi, four major semiconductor projects worth around Rs 1.24 lakh crore were already taking shape in the state, apart from the two newly approved projects.

Modhwadia said the latest approvals under Prime Minister Narendra Modi's India Semiconductor Mission would further strengthen Gujarat's semiconductor ecosystem and position the state as an important centre for chip manufacturing in India.

"Central government's decision had strengthened the complete semiconductor value chain in Gujarat, ranging from chip designing and fabrication to packaging and testing," he noted.

Providing details of the Dholera project, Modhwadia said Crystal Matrix Limited would establish the country's first compound semiconductor fabrication facility in Dholera SIR.

The facility will manufacture Mini and Micro-LED displays based on Gallium Nitride (GaN) technology, products that are currently imported into India.

"The facility will annually manufacture 72,000 square metres of display panels and 24,000 sets of RGB wafers," he said.

According to the minister, the displays manufactured at the Dholera plant are expected to be used in smartphones, dashboards of electric vehicles and high-end television screens.

"Smartphones, electric vehicle dashboards and high-end television screens in the future will be equipped with 'Made in Gujarat' chips," he added.

The second project approved by the Union Cabinet will see Suchi Semicon Private Limited establish a Semiconductor Assembly and Test (OSAT) facility in Surat at an investment of Rs 868 crore.

The facility will manufacture more than 103.03 crore semiconductor chips annually. Modhwadia said the Surat facility would help meet demand from the automobile and industrial automation sectors.

"Surat, traditionally known for its diamond and textile industries, was now also emerging as a centre for high-technology semiconductor manufacturing," he said.

The minister said the Gujarat State Electronics Mission (GSEM) was acting as a single-window facilitator for semiconductor investors in the state and was simplifying administrative procedures.

He added that GSEM would provide support to both companies in land allocation, water supply, electricity and other infrastructure facilities to ensure the timely implementation of the projects.

- IANS