One after one other, main chip makers are deciding on Gujarat to arrange their items. Micron Technologies and Vedanta Foxconn Semiconductors Ltd each are on observe to set up their vegetation in the state. But why Gujarat?
According to the semiconductor business, the Micron and Vedanta Foxconn initiatives are simply two examples of the rising curiosity in semiconductor manufacturing in Gujarat. And there are a number of the explanation why Gujarat is rising as a most well-liked semiconductor manufacturing vacation spot.
These initiatives are anticipated to create 1000’s of jobs and generate billions of {dollars} in funding. They are an indication that Gujarat is properly-positioned to grow to be a significant participant in the worldwide semiconductor business.
There are 4 main elements behind Gujarat turning into the popular state for the semiconductor ecosystem. These embody authorities help, the prevailing infrastructure, the expertise pool, location benefit, and political stability in the state.
It is believed that the Gujarat authorities has been very supportive of the semiconductor business, providing numerous incentives to entice funding. These embody subsidies on energy, water, and land, in addition to tax breaks. This is the one state in India that has a devoted semiconductor coverage.
Gujarat has a properly-developed infrastructure, together with a powerful energy grid, a deepwater port, and a properly-related transportation community. This makes it a horny location for semiconductor manufacturing, which is a capital-intensive business that requires a dependable provide of energy and a superb transportation community.
Additionally, the state has a big pool of expert employees, lots of whom have expertise in the manufacturing sector. This makes it a superb location for semiconductor manufacturing, which requires a talented workforce.
Industry insiders additionally level out that Gujarat is positioned in the western a part of India, which is shut to the foremost markets in Europe and West Asia. This makes it a superb location for exporting semiconductors. Additionally, Gujarat is a politically steady state, which is vital for companies which might be investing in lengthy-time period initiatives.
Geographical benefit
Dr Sailesh Lachu Hiranandani, who’s the chairman of SRAM & MRAM Group, instructed News18: “Gujarat boasts of excellent infrastructure facilities, including well-developed industrial parks and special economic zones (SEZs) dedicated to the electronics and semiconductor sectors, offering conducive infrastructure, transportation, and logistics facilities. The state government has also taken various policies and initiatives to promote the semiconductor industry, offering incentives, tax benefits, and subsidies to attract semiconductor companies to set up manufacturing units in the state. A large market, as well as proximity to key markets in India and neighbouring countries, also plays a pivotal role here.”
Sudhir Nair, treasurer at India Electronics & Semiconductor Association (IESA) and founding father of eInfochips, Gujarat, additionally talked about some geographical benefits.
“Gujarat has a unique advantage of a 940 sq km land parcel, which is not available anywhere in India or Asia. This land is ideal for semiconductor manufacturing, which requires a lot of space,” he mentioned.
According to him, the provision of the canal in the guts of Dholera that gives water from the Narmada Dam additionally makes this place very best for manufacturing operations. Dholera, properly-related to Ahmedabad by street and rail, may even have a big worldwide airport, which is able to make it straightforward to transport items and other people.
Furthermore, Nair mentioned: “Gujarat is a power surplus state, so there is no risk of outages. It is also a hub for chemicals and other gases, which are essential for semiconductor manufacturing.”
The coverage
Hiranandani particularly highlighted the position of Gujarat’s semiconductor coverage. According to him, it performed a big position in setting the benchmark as a most well-liked vacation spot for the semiconductor business.
“The policy also supports various incentives, benefits, and provisions to encourage investments in the state, for instance, capital subsidies, interest subsidies, tax exemptions, and reimbursement of land costs,” he added.
Furthermore, the business insider mentioned that the state additionally ensures the provision of world-class infrastructure services, together with dependable energy provide, water, telecommunications connectivity, and different facilities obligatory for semiconductor corporations.
“Single-window clearance by the local government simplifies the bureaucratic procedures and reduces the time and effort required for obtaining necessary approvals, permits, and licences,” famous Hiranandani.
Overall, Gujarat has an a variety of benefits that make it a horny location for semiconductor manufacturing. These benefits are probably to proceed to entice funding in the long run, as the worldwide demand for semiconductors continues to develop.
