Gujarat’s Semiconductor Landscape to Get Rs 75,000 Crore Further Push

12 May,2023 | Avirahi Group

Following a $20 billion investment promise by Vedanta-Foxconn, a joint venture between the Vedanta Group and Taiwanese chipmaker Foxconn, Gujarat’s semiconductor industry is expected to grow even bigger and better. The government will offer 10 years of land purchase subsidies, capital investment subsidies, stamp duty refunds, fixed water tariff subsidies, and energy tariff subsidies.

According to top state government sources, Micron Technology, a US-based producer of data storage devices, is in advance-stage negotiations with the state government to invest Rs 75,000 crore here. However, the insider stated that Gujarat will most likely receive the project. As much as there was the demand rising for the SIR, these promising ventures are bound to make the plot prices for residential projects in dholera sir go up higher.

Through the India Semiconductor Mission (ISM), which offers Rs 76,000 crore to fund projects, the centre has also announced four programmes to facilitate the development of sustainable semiconductors.

In order to establish the nation’s first semiconductor fab unit, a display fab unit, and a semiconductor assembly and testing unit at Dholera—which has been designated a semicon city—Vedanta-Foxconn and the state signed a memorandum of understanding last year. With the news now confirmed, the demand and dholera smart city plot price , both are getting higher.

The joint venture between Vedanta and Foxconn chose Dholera SIR for the location of their semiconductor and display production facility after conducting a thorough site analysis and consulting with Gujarati government officials. According to a top state government official, the project is currently in the advanced stage of the Indian government’s appraisal.

Ashwini Vaishnaw, Minister for Railways, Communications, Electronics, and Information Technology, was present when the MoU was signed in Gandhinagar. Bhupendra Patel, the chief minister of Gujarat, pledged the support of his government and stated that this new facility will also aid in creating one lakh job possibilities in the state. In an earlier speech to an electoral rally in Bhavnagar in November, Prime Minister Narendra Modi had claimed that the massive semiconductor plant would be built in the Dholera Special Investment Region, around 100 kilometres from Ahmedabad.

Under the “Gujarat Semiconductor Policy 2022-27,” the Vedanata-Foxconn semiconductor manufacturing complex is projected to get significant subsidies and incentives, including no stamp duty on land purchases and discounted water and electricity.

According to this programme, all qualified projects would receive a 75 percent discount on the first 200 acres of land they acquire to build manufacturing facilities, as well as good quality water for the first five years at a cost of Rs 12 per cubic metre. Gujarat had been the first Indian state to have such a specific policy for the semiconductor and display fabrication industry with its semiconductor policy.

The state of Gujarat’s policy intends to lead the creation of an ecosystem for electronics system design and manufacturing (ESDM) and to gain a larger proportion of investments made as part of the national initiative to make India a centre for the production of semiconductors.

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