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Vibes Of India
Vibes Of India

Gujarat Expands Social Infra as Dholera Emerges as Semiconductor Hub

| Updated: March 6, 2025 13:35

Gujarat is set to enhance its social infrastructure around industrial areas as four out of the five semiconductor plants being established in India are being constructed at Dholera, Chief Minister Bhupendra Patel announced on Wednesday. 

Speaking at the India Electronics and Semiconductor Association Vision Summit 2025, Patel attributed this development to the state’s early introduction of an electronics and semiconductor manufacturing policy.

The state government plans to develop hospitals, schools, cafeterias, food courts, and other essential facilities in the vicinity of these industrial zones to support the growing workforce and industry needs.

Earlier in the day, India Semiconductor Mission CEO Sushil Pal stated that semiconductor manufacturing could account for up to 25 per cent, or $100 billion, of the targeted $500 billion in semiconductors and electronics manufacturing by 2030-31. 

He highlighted the significance of electronics manufacturing, citing its market size, growth potential, high employability, and status as the most traded commodity globally. Pal also noted that $18 billion in investment had been secured under the first phase of the India Semiconductor Mission.

The first phase, sanctioned by the Union Cabinet in December 2021, has seen approvals for four chip packaging facilities and one chip manufacturing unit. The Rs 76,000 crore initiative aims to establish a comprehensive semiconductor manufacturing and packaging ecosystem in the country.

Micron, a US-headquartered company, was the first to receive government approval for a chip packaging unit at Sanand in Gujarat. The assembly, testing, marking, and packaging plant will be developed at a cost of $2.75 billion, incorporating investments from the company alongside incentives from state and central governments.

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