Gujarat Becomes Top Choice for Semiconductor Industry, Says CM Bhupendra Patel

Gujarat has solidified its position as the preferred destination for semiconductor manufacturing in India, with Chief Minister Bhupendra Patel emphasizing the state’s readiness to integrate into the global semiconductor supply chain. Speaking at the three-day Gujarat SemiConnect 2025 event in Gandhinagar, Patel highlighted the state’s emergence as a technology hub, particularly in sectors like artificial intelligence (AI), machine learning, and drone technology.

The event aims to attract investments, integrate local industries into global value chains, and bolster innovation in the semiconductor sector. On Wednesday, eight significant agreements were signed between the state and central governments and major industry players, including Tata Electronics, Micron Technology, Taiwan Surface Mounting Technology (TSMT), NextGen, and Jabil India.

Major Investment Agreements

One of the key agreements was a ₹91,526 crore financial support agreement (FSA) between Tata Electronics and the India Semiconductor Mission (ISM), a government initiative under the Ministry of Electronics and Information Technology (MeitY). This agreement supports the establishment of a semiconductor fabrication unit in Dholera, receiving financial backing from the central government.

Tata Electronics also signed a tripartite agreement with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies, aiming to enhance chip production in Dholera. Additionally, Tata Electronics partnered with IIT Gandhinagar to promote skill development in the semiconductor sector.

NextGen and Jabil India’s Semiconductor Projects

NextGen, in collaboration with Hitachi and SolidLight, signed a ₹10,000 crore MoU to set up a compound semiconductor fabrication and optoelectronics facility in Gujarat. Meanwhile, Jabil India announced a ₹1,000 crore investment in a silicon photonics manufacturing unit focused on producing photonics transceivers for AI, telecom, IoT, and smart infrastructure. The facility is expected to create around 1,500 jobs.

Kaynes Technology and Taiwan’s TSMT Expand Operations

Kaynes Technology laid the foundation stone for a new semiconductor unit in Sanand, targeting pilot production by June 2025 and full-scale operations by January 2026. The company also inked agreements with U.S.-based Alpha and Omega Semiconductor (AOS) for power semiconductor products and other technology partners.

Taiwan Surface Mounting Technology (TSMT) signed an MoU to invest ₹500 crore in a new Electronics Manufacturing Services (EMS) unit in Gujarat, projected to generate around 1,000 jobs.

Micron Technology’s Focus on Sustainability and Workforce Development

Micron Technology, which already operates a semiconductor unit in Sanand, signed an MoU focusing on environment, health, safety, STEM education, and skilled workforce development. The initiative is expected to benefit rural communities around Sanand.

India-Netherlands Collaboration in Semiconductor Industry

Dutch Ambassador Marisa Gerards praised the growing semiconductor ties between India and the Netherlands, stating that while the Netherlands is a powerhouse in semiconductor manufacturing, India—particularly Gujarat—is rapidly emerging as a key player in the sector.

With these major investments and partnerships, Gujarat is set to play a crucial role in India’s goal of achieving self-reliance in semiconductor manufacturing and strengthening its global presence in the industry.

Sources By Agencies

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