Ahmedabad: Gujarat has emerged as the preferred destination for setting up semiconductor units in India and the state is fully prepared to integrate into the global semiconductor supply chain, chief minister Bhupendra Patel said on Wednesday.
Speaking at the three-day Gujarat SemiConnect 2025 in Gandhinagar, Patel highlighted Gujarat’s emergence as a technology hub. “Under the leadership of the Prime Minister, India is strengthening its global position in emerging sectors like semiconductors, artificial intelligence, machine learning, and drone technology,” he said, adding that Gujarat had launched a Global Capability Center Policy to encourage AI, machine learning, analytics, and related industries.
The three-day event seeks to draw investments by showcasing Gujarat’s potential as an attractive destination, drive capital inflow into the state’s semiconductor industry, integrate local industries into global value chains and enhance the state’s capacity for innovation in the semiconductor sector.
On Wednesday, eight agreements were signed by the state and central governments with companies such as Tata Electronics, Micron Technology, Taiwan Surface Mounting Technology (TSMT), NextGen, and Jabil India.
One of the major MoUs included a ₹91,526 crore financial support agreement (FSA) between Tata Electronics and the India Semiconductor Mission (ISM), a government initiative by MeitY, for a semiconductor fabrication unit in Dholera, which will receive financial assistance from the central government.
The Tata Group earlier announced the project during the 10th Vibrant Gujarat Global Summit in January 2024 where Tata Sons Chairman N Chandrasekaran described the semiconductor initiative as a strategic investment that would contribute significantly to India’s technological advancement and self-reliance in chip manufacturing.
NextGen, in collaboration with Hitachi and SolidLight, signed an MoU worth ₹10,000 crore to establish a compound semiconductor fab and optoelectronics facility in Gujarat.
Jabil India signed an MoU to establish a new silicon photonics manufacturing unit in Gujarat with an investment of ₹1,000 crore. The facility will focus on producing photonics transceivers—data communication devices used in AI, telecom, IoT, and smart infrastructure. The investment is expected to create around 1,500 new jobs.
A tripartite agreement was signed between Tata Electronics, Taiwan’s PSMC, and Taiwanese fabless semiconductor manufacturer Himax Technologies. The partnership will play a crucial role in Tata Electronics’ semiconductor chip production at Dholera with support from PSMC. Additionally, Tata Electronics entered into a partnership with IIT Gandhinagar to enhance skill development in the semiconductor sector.
Kaynes Technology laid the foundation stone for its new semiconductor unit in Sanand, with plans to commence pilot production in June 2025 and full-scale manufacturing by January 2026. The company also announced a multi-year, multi-million-dollar deal with U.S.-based Alpha and Omega Semiconductor (AOS) for power semiconductor products, along with agreements with technology, equipment, and supply chain partners.
Taiwan Surface Mounting Technology (TSMT) signed an MoU to establish a new Electronics Manufacturing Services (EMS) unit in Gujarat with an investment of over ₹500 crore, with an aim to create approximately 1,000 new jobs.
Micron Technology, which has 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.
Dutch ambassador Marisa Gerards highlighted the growing ties between India and the Netherlands in the semiconductor sector, noting that while the Netherlands is a powerhouse in semiconductor manufacturing, India— especially Gujarat — was rapidly emerging as a key player.
