AHMEDABAD: In a major policy move aimed at strengthening Gujarat's position as an emerging semiconductor manufacturing hub, the state government has allowed Micron Semiconductor Technology India Private Limited's Sanand facility to operate 12-hour work shifts, subject to the statutory ceiling of 48 working hours a week.
The approval, described as the first of its kind in Gujarat, has been granted under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, which came into force nationwide on November 21, 2025. While the Code retains the maximum weekly working limit of 48 hours, it also empowers the appropriate government to grant exemptions to factories under specified conditions.
Gujarat has invoked this provision with the stated objective of balancing industrial requirements with worker protection, particularly as the state seeks to attract large-scale investments in strategically important semiconductor manufacturing.
Labour, Skill Development and Employment Minister Kunvarji Bavaliya said the approval was intended to promote industrial growth without diluting the statutory weekly working limit.
"The Occupational Safety, Health and Working Conditions Code focuses on Ease of Doing Business and Ease of Compliance. While the Code prescribes a maximum of 48 working hours per week, it also empowers the appropriate government to grant exemptions in the case of factories. Gujarat has exercised this provision keeping in view the larger public interest, economic growth and employment generation in the state," Bavaliya said.
The government has, however, made it clear that the relaxation does not mean workers can be made to work 12 hours every day. Adult employees can work up to 12 hours a day only if their total working hours remain within the 48-hour weekly ceiling. This means the extended shifts will be balanced by fewer working days, with the remaining days treated as paid leave.
More importantly, the extended shift arrangement will apply only to employees who provide written consent voluntarily.
The approval comes with a series of conditions designed to prevent the relaxation from diluting labour protections. The total spread of work, including rest intervals, cannot exceed 12 hours a day, while rest breaks must comply with the OSH Code, 2020, and the Gujarat Occupational Safety, Health and Working Conditions Rules, 2025.
The company will also have to maintain separate records of employees working under the approved 12-hour arrangement and comply with any additional conditions imposed by the Chief Inspector-cum-Facilitator for Factories.
The government has further warned that any breach of the prescribed conditions could result in cancellation of the exemption and legal action against the establishment.
Minister of State for Labour, Skill Development and Employment Kantilal Amrutiya said the decision was designed to support strategic industries while expanding employment opportunities.
"The relaxation reflects the state's commitment to accelerating industrial development, expanding economic activity and creating new employment opportunities while supporting industries of strategic national importance, particularly the semiconductor sector," Amrutiya said.
The decision comes against the backdrop of the unique operating requirements of semiconductor manufacturing. Unlike conventional factories, semiconductor assembly and testing facilities operate with sophisticated automated systems inside highly controlled cleanroom environments, where continuous production is critical for efficiency, equipment utilisation and product quality.
A 12-hour shift model can reduce the frequency of shift changes and minimise repeated cleanroom entries, while allowing expensive automated equipment to operate more continuously. The model is also used in semiconductor manufacturing globally, particularly in facilities where production processes and equipment are designed for round-the-clock operations.
For Gujarat, the policy assumes greater significance because Micron's Sanand facility is being developed as a major component of the company's global manufacturing network.
The first phase is expected to include more than 500,000 square feet of cleanroom space, including one of the world's largest single-floor semiconductor assembly and test cleanrooms. The facility is expected to assemble and test tens of millions of semiconductor chips in 2026, with production capacity projected to scale to hundreds of millions of chips annually from 2027.
The decision also fits into Gujarat's wider strategy to establish itself at the centre of India's semiconductor ecosystem. Prime Minister Narendra Modi has identified semiconductors as a strategic pillar of India's ambition to emerge as a global technology and manufacturing powerhouse, with the India Semiconductor Mission seeking to build a complete domestic chip manufacturing ecosystem.
Gujarat has positioned itself as a major destination for semiconductor investments, with projects covering fabrication, assembly, packaging, testing and advanced electronics manufacturing.
Gujarat was the first state to introduce a dedicated semiconductor policy offering incentives and institutional support for the sector. The state has subsequently secured six major projects approved under the India Semiconductor Mission, involving investments of nearly Rs 1.4 lakh crore.
These projects are expected to generate around 50,000 direct and indirect employment opportunities, adding further weight to the government's argument that labour flexibility in strategically important manufacturing facilities must be aligned with industrial expansion.
The Micron approval, therefore, represents more than a change in factory working hours. For Gujarat, it is a policy test of whether the state can offer globally compatible manufacturing conditions while retaining the legal safeguards governing working hours, consent, rest and employee welfare.
