AHMEDABAD: Unveiled on July 27, the ‘Gujarat Semiconductor Policy 2022-27’ offers a range of subsidies for entrepreneurs and investors in the electronics system design and manufacturing (ESDM) sector – on land, power, and water tariffs. Secretary of the Department of Science and Technology Vijay Nehra told this newspaper that the Gujarat Semiconductor Policy 2022-27 would facilitate eligible projects during the land allotment stage, expedite approvals processes, improve access to utilities like power, water, and gas besides industrial infrastructure, and offer a support package of fiscal incentives.
“Gujarat is the first state to launch a dedicated policy for semiconductors and display manufacturing. It aims to generate about two lakh jobs in the next five years,” said Chief Minister Bhupendra Patel.
Taiwan accounts for 92% of global production for process nodes below 10 nanometers -- the chips that power the world’s most advanced machines. Semiconductors are China’s number one import, and with Beijing spending more on chips than crude oil, they are the digital fuel of its economy.
Semiconductors and displays are the cornerstones of modern electronics and they are driving the next phase of the digital revolution. The usage of semiconductors ranges from smartphones and cloud servers to modern cars and defense systems. The Indian semiconductor market stood at $15 billion in 2020 and is estimated to reach $63 billion by 2026.Industry estimates indicate that the global semiconductor shortage has led to a production loss of a minimum 5-7% in the country.