ગુજરાતી
English
7 semiconductor factories are using 1 lakh crore liters of water
Water is used as much as the cities of Ahmedabad and Surat
By 2030, it will consume as much water as 17 metropolitan cities of the state.
Dilip Patel
Ahmedabad, 1 July 2026
Tata Rs 300 crore, Keynes Semicon Rs 230 crore, Micron Rs 135 crore, Suchi Semicon Rs 103 crore, CG Semi Rs 18 crore will or are manufacturing semiconductor chips in Gujarat. Which is a total of 786 crore chips.
To make one semiconductor, 140 liters of water is required. Based on that, it can be estimated that 6 semiconductor factories of Gujarat are using about 1 lakh 10 thousand crore liters of water.
Which is the amount of water used in a city. Ahmedabad needs 66 thousand crore liters of water every year. 57 thousand crore liters of water is consumed in Surat. That means 6 factories are using as much water as these two cities. While another factory is yet to come up, the semiconductor factory will use as much water as 17 cities of Gujarat by 2030.
The Gujarat government has set a target of making 50 percent of India’s chips in Gujarat.
Currently, 6 out of 10 projects in India are in Gujarat. By 2030 Rs. There will be an investment of Rs 1.70 lakh crore.
S&P Global Report
According to the report of S&P Global, one chip behind a very advanced i.e. AI or premium smartphone chip can consume 100 to 140 liters of water.
Water consumption in the semiconductor industry is very high.
ultra pure water
To make chips, no tap or drinking water is used but extremely pure water is used. In the factory, water is purified thousands of times to make ultra pure water, which is 1 thousand times purer than drinking water. To make 1 thousand liters of ultra pure water, about 1400 to 1600 liters of normal water has to be processed.
Why water?
Because while making chip circuits on silicon sheet, even a small particle of dust or salt in water can damage the chip. Therefore this water is used for repeated cleaning (rinsing) of the chip. It is treated by processes such as deionization and reverse osmosis to remove pollutants, minerals and other impurities that can damage the chips.
water consumption in a factory
A typical semiconductor factory uses 15 million to 35 million liters of water per day. This consumption is as large as the daily water consumption of an entire medium-sized city.
7 semiconductor factories in Gujarat use 1 lakh 10 thousand crore liters of ultra water per year
technology
The technology we rely on — from cellphones and computers to LED bulbs and cars — couldn’t work without semiconductors. And semiconductors cannot be made without water. Tech companies need semiconductors to make electronic devices and rapidly advance their artificial intelligence (AI) technology.
What is a semiconductor?
Semiconductors – Semiconductors are the brain of modern electronics. A conductor is a substance intermediate between copper, through which electricity passes easily, and materials through which electricity does not pass.
The main function of a semiconductor is to turn on or off the electric current and to control its flow.
Processor chips used in computers, mobiles and servers are made of semiconductors.
It processes data by performing billions of calculations very quickly.
It also works to store photos, videos and other information.
Analog signals like our voice are converted into digital signals in the computer language of 0’s and 1’s. With which we can talk on mobile and use the internet.
Power conversion helps to convert alternating current (AC) into direct current (DC).
Without it the charger and power supply board cannot function.
Used in smartphones, laptops, TVs, smart watches, car braking systems, displays, engine control units, electric vehicles. Used in refrigerators, air conditioners and washing machines, and in artificial intelligence (AI), supercomputers and satellites.
calamity
Water is becoming a major weakness of semiconductor manufacturing. Wherever there is water, a factory is built.
7 companies should provide information about water to the people of Gujarat when there is a shortage of fresh water.
The problem is not going to go away soon. There is continuous drought and extreme weather. Semiconductor companies cite natural resources, including water, as the biggest environmental threat to their business.
In addition to excessive water use, chip production also produces wastewater containing pollutants, including heavy metals, which can be toxic to aquatic ecosystems and humans.
Due to population growth, there has been a shortage of Narmada River water and ground water of Ahmedabad. A semiconductor tech company is consuming water in it.
factory production in gujarat
Semiconductor plants and their capacity in Gujarat
Suchi Semicon (Surat): This plant will produce about 103.3 crore chips annually.
CG Semi (Sanand): Has the capacity to produce about 18 million chips annually.
Keynes Semicon (Sanand): Producing 230 chips per year.
Micron (Sanand): Assembles, tests, and packages memory chips, producing millions of units for global supply. Chips worth 135 crores. Rupee. There is an investment of Rs 22 thousand 516 crore.
The PSMC Dholera SIR facility is the country’s first large-scale semiconductor fabrication plant.
It has the capacity to process approximately 600,000 silicon wafers annually, yielding around 3 billion (300 crore) semiconductor chips.
Production capacity stands at 250 million chips per month, or 8.3 million chips per day.
It will process 300mm (12-inch) wafers, with logic technology ranging from 28 nanometers to 110 nanometers.
These chips will be used in mobile phones, electric vehicles, automotive systems, 5G communication, and data storage devices. Tata has signed technical agreements with the Dutch company ASML (a manufacturer of chip-making machinery) and Taiwan’s PSMC. The project involves an investment of ₹91,000 crore.
Tata’s Sustainable Practices
Modern companies like Tata and Micron recycle (purify) 65% to 85% of the water used in their factories and reuse it in production.
Global Report
According to an S&P Global report, the industry’s global water consumption is already equivalent to that of a city with a population of 7.5 million, such as Hong Kong.
Solutions
Chip factories can collaborate with cities to establish reclaimed water facilities. The treated water produced can replenish groundwater supplies and provide the necessary water for cooling systems.
Wastewater can be recycled.
New technologies requiring less water can be adopted.
Pollution levels in water systems surrounding semiconductor manufacturing hubs—including those in Eastern China and South Korea—are critically high, causing environmental damage.
Mineral Mining
There is a need to fully identify water-related risk factors, particularly in chip manufacturing and metal mining. The mining of precious metals and rare earth elements—essential for semiconductor production—also consumes water and leads to the pollution of water resources. Semiconductor factories rely on water for cooling systems and power generation.
Economic Benefits
A key objective of the Gujarat Industrial Policy 2025–30 is to establish Gujarat as India’s largest semiconductor manufacturing hub. Under this policy, the Gujarat government has formulated a framework to support industries manufacturing high-tech products, specifically promoting sectors such as semiconductors, electronics, AI hardware, drones, space technology, and defense systems. The Dholera Special Investment Zone (SIZ) has once again been designated as a primary investment center. Subsidies totaling approximately ₹1 lakh crore could be extended to seven semiconductor factories—a figure that has not yet been officially announced by the government. Additionally, a similar amount in subsidies could be provided by 2030.
Financial Assistance
Under the Government of India’s ‘India Semiconductor Mission,’ financial assistance amounting to approximately ₹45,500 crore—covering up to 50% of the project cost—may be announced. The Gujarat government provides assistance of up to 20% of the project cost. Tata is expected to contribute approximately ₹18,200 crore. Consequently, the combined direct assistance from both governments could reach approximately ₹63,700 crore.
Thus, the total direct and other forms of support from the Central and State governments to foster the semiconductor industry could amount to ₹1 lakh crore.
Land-related Benefits
The Gujarat government allocated approximately 160 acres of land to Tata Electronics in Dholera, where the land value is ₹1 crore per acre. A total of 163 acres has been allocated within the SEZ area, attracting investment commitments of ₹91,000 crore from companies. CG Power has been allotted 28 acres of land in Sanand, where the market price is ₹5 crore per acre; the projected investment stands at ₹7,600 crore. Micron Technology’s ATMP plant in Sanand has commenced operations. The Indian and Gujarat governments have subsidized 70% of the project cost. Additional benefits included land allotment, stamp duty concessions, provisions for electricity, water, and infrastructure (such as roads and logistics), as well as expedited approval processes and single-window clearance; while the monetary value of these specific perks has not been disclosed, they represent significant relief—potentially worth around ₹4,000 crore, inclusive of other concessions. Consequently, the company has benefited substantially from this ₹22,500 crore project. Similarly, for Tata Semiconductor’s ₹91,000 crore investment in Dholera, the central and state governments have provided 70% financial and land-related support. Previously, the opposition had alleged that the Tata Nano project in Sanand received direct aid of ₹2,000–2,500 crore, with total benefits amounting to ₹33,000 crore.
Support Covering 70% of Investment
The Modi government at the Centre provided financial assistance covering 50% of the project cost—amounting to ₹11,250 crore—while the Gujarat government contributed 20% of the cost, or ₹4,500 crore, resulting in a total direct aid of ₹15,750 crore.
Benefits to the BJP
The BJP has received substantial funds during its tenure in power at both the central and state levels. A chip-manufacturing company operating in Sanand has made significant donations to the party. Ramesh Kunhikannan, founder of Mysuru-based Kaynes Technology India Limited, donated ₹17 crore to the BJP in the 2024–25 fiscal year. Prior to this, approval had been granted for a proposal by Kaynes Semicon Private Limited—a subsidiary of Kaynes Technology—to establish a semiconductor unit in Sanand, Gujarat. Construction of this factory, involving an investment of ₹3,300 crore, has been underway since 2023. 6 million chips will be produced every day.
What are semiconductors made of?
Semiconductors are generally not made from pure metals; instead, they are made from semi-metals or chemical compounds.
To manufacture them…
Silicon is the most essential element. 95 percent of the world’s semiconductor chips are made from readily available silicon. It is derived from sand—which is mined illegally in Bharuch.
Germanium has limited applications, yet it is still used in high-speed electronics and fiber optics.
Specialized semiconductors are created by combining two or more elements to withstand higher speeds and temperatures. Gallium arsenide is used in lasers, LEDs, and satellite communication chips.
Silicon carbide and gallium nitride are widely used to handle high power in electric vehicles and fast chargers.
Silicon is not a good conductor of electricity. Therefore, other metals or elements are added to initiate the flow of electricity—a process known as “doping.” Phosphorus or arsenic is used to create a negative charge (N-type), while boron or gallium is used to create a positive charge (P-type). (Translated from Gujarati; please refer to the original report.)
Information on water sources:
https://www.spglobal.com/market-intelligence/en/news-insights/resources/kpi-guides/semiconductor
https://www.weforum.org/stories/2024/07/the-water-challenge-for-semiconductor-manufacturing-and-big-tech-what-needs-to-be-done/
