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Modi government funded over 100 companies in Gujarat.
Dilip Patel
Ahmedabad, 01 March 2026
The Indian government is providing significant financial and infrastructure benefits to semiconductor companies. A key component of this initiative is the India Semiconductor Mission (ISM), worth ₹76,000 crore ($10 billion USD) to attract investment in chip manufacturing, display manufacturing, and design. ₹1.25 lakh crore has been invested and is currently being invested in Gujarat, with 50 to 80 percent subsidies. Some units have already availed the subsidies.
After donating 90 percent of the public’s money, Narendra Modi held a rally in Sanand. Public funds brought him fame, such as the Tata Nano car. Production of the Tata Nano has been halted for five years. The government provided ₹33,000 crore in support to the Tata Nano in Gujarat 15 years ago.
75% subsidy on the purchase price of 200 acres of land in Dholera. 100% refund of stamp duty and registration fees. ₹2 per unit for 10 years. ₹12 per cubic meter of cheap water. 40% of the capital cost will be covered by central government projects.
SEZ rules have been changed for land up to 10 hectares. Factories are being set up virtually free, major announcements are being made, and multinational companies are coming to the state.
64-bit microprocessors. India accounts for approximately 20% of the world’s total microprocessor production.
Chief Minister Bhupendra Patel inaugurated the Gujarat Semiconductor Connect Conference 2024. He stated that more than 80% of investors in the semiconductor sector are eager to set up their units in Gujarat. He stated that the state government will provide necessary assistance and support to such industries. Gujarat implemented the country’s first semiconductor policy in 2022.
Government Benefits
Financial Support for Manufacturing (Up to 50%+)
Semiconductor and Display Fabs: The “Modified Scheme” provides financial support of 50% of the project cost for silicon CMOS-based fabs, with tiered support (40-50%) for different nodes. 50% support is also available for display fabrication units (TFT LCD/AMOLED). Compound Semi/ATMP/OSAT: A special scheme for compound semiconductor, silicon photonics, and assembly, testing, marking, and packaging (ATMP)/OSAT facilities provides 50% of the capital cost (or 30% for specific, non-silicon projects).
Gujarat Government Financial Support
The Gujarat government provides a 40% incentive on CAPEX support approved by the Government of India under the National Scheme for Semiconductor and Display Fab Ecosystem.
A one-time 100% refund of stamp duty and registration fees. Projects are provided water at the rate of ₹12 per cubic meter for 5 years.
A 50% capital subsidy for setting up a desalination plant for the first 5 years.
An electricity tariff subsidy of ₹2 per unit for 10 years.
Exemption from paying electricity duty as per the Gujarat Electricity Duty Act, 1958.
Projects are assisted in complying with legal regulations.
Single-window clearance facilitates faster project approvals.
Companies are assisted in identifying and purchasing suitable developed land.
Permissions for Right of Way (RoW) and Change of Land Use (CLU) are granted.
The government has reduced many of the hassles associated with land acquisition.
Issues related to Change of Land Use (CLU) permissions, etc.
Dholera receives significant funding.
Dholera Semicon City offers a 75% subsidy on 200 acres of land.
More land will be available at a 50% subsidy for projects approved by the Government of India. On January 10, 2025, the Gujarat Government’s Department of Science and Technology requested a central grant of ₹40,783 crore for six years for the semiconductor industry in Sanand and Dholera SIR.
Of the five semiconductor facilities approved by the Government of India, four are being built in Gujarat. A chip packaging cluster is being developed in GIDC Sanand. This includes major projects by Micron Technology Inc., CG Semi, and Cans Semicon.
India’s first commercial semiconductor fab is being built by Tata Electronics Private Limited in Dholera SIR.
Easy access to Common Effluent Treatment Plants (CETPs) will be provided.
Treatment, storage, and disposal facilities will be provided.
Gujarat
States like Gujarat and Uttar Pradesh offer additional incentives, including up to 40% of CAPEX (in addition to central assistance), 100% stamp duty reimbursement, and heavily subsidized utilities.
Gujarat State Electronics Mission
The Design Linked Incentive (DLI) scheme provides the following benefits to local startups and MSMEs:
Provides up to 50% of the cost of product design (up to ₹15 crore).
A 4%-6% incentive on net sales of up to ₹30 crore for 5 years.
Electronic design automation will be provided to 72 companies for factory infrastructure by August 2025.
Provides a 25% financial incentive on capital expenditure for electronic components and sub-assemblies.
Support for a Semicon City in Dholera with guaranteed subsidized land, water, and electricity.
Key Approved Projects
By the end of 2025, the central government has approved more than 10 major projects with a total investment of over ₹1.6 lakh crore, five of which are in Gujarat.
Micron: Semiconductor Unit (Sanand, Gujarat).
Micron Technology Inc. has invested ₹22,516 crore in Gujarat.
Micron is setting up a semiconductor manufacturing facility in India. Micron’s facility in India will enable assembly and test production for both DRAM and NAND products and meet domestic and international market demand.
Production capacity is approximately 14 million units per week.
Tata Electronics and PSMC: Fab (Dholera, Gujarat)
Tata Electronics Private Limited (TEPL) is setting up a semiconductor manufacturing facility in Gujarat with an investment of ₹91,526 crore. This fab facility will be set up in a technology partnership with PSMC, Taiwan. The project will have a production capacity of approximately 50,000 wafer starts per month (WSPM).
Tata Electronics CEO Randhir Thakur stated that his company is setting up a semiconductor manufacturing plant in Dholera with an investment of US$11 billion, which will generate employment for over 20,000 youth in Gujarat.
CG Power and Renesas: OSAT Facility (Sanand, Gujarat)
CG Power & Industrial Solutions Limited is setting up a semiconductor manufacturing facility with an investment of ₹7,584 crore. This facility will be built as a joint venture partnership with Renesas Electronics America Inc., USA, and Stars Microelectronics, Thailand.
CANS – Gujarat
CANS Technology India Limited (KTIL) is setting up a semiconductor manufacturing facility in Gujarat with an investment of ₹3,307 crore. This facility will have a capacity to produce over 6.33 million chips per day.
HCL and Foxconn: Display Driver Chip Plant (Uttar Pradesh).
These incentives are designed to promote a self-reliant, global, and sustainable semiconductor manufacturing ecosystem in India.
India Semiconductor Mission 2.0
₹1,000 crore budget boost for semiconductor self-reliance
Posted: 07 FEB 2026 1:13 PM by PIB Ahmedabad
Tata – Assam
Tata Electronics Private Limited (TEPL) is setting up a semiconductor manufacturing facility in Assam with an investment of ₹27,120 crore. This facility will use indigenous semiconductor packaging technology and will have a production capacity of 48 million units per day.
Vama – Uttar Pradesh
Vama Sundari Investments (Delhi) Private Limited (VSIPL) is setting up a semiconductor manufacturing facility in Uttar Pradesh with an investment of ₹3,706 crore. The production capacity will be approximately 20,000 wafers per month / 36 million chips per month.
3D Glass – Odisha
3D Glass Solutions Inc. (3DGS) is setting up a semiconductor manufacturing facility in Odisha with an investment of ₹1,943 crore. The proposed installed capacity for glass panel substrate manufacturing, assembly, and heterogeneous integration (3DHI) is approximately 5,800 panels per month, representing 4.20 million units and 1,100 units per month, respectively.
SiCSem – Odisha
SiCSem Private Limited is setting up a semiconductor manufacturing facility in Odisha with an investment of ₹2,066 crore. The manufacturing capacity is 5,000 wafers/month, and the packaging capacity is 8 million units/month.
Continental Devices – Punjab
Continental Devices India Private Limited (CDIL) is expanding its semiconductor manufacturing facility in Punjab with an investment of ₹117 crore. This facility will manufacture high-power discrete semiconductor devices. The production capacity will be approximately 158.38 million units per year.
Advanced Systems – Andhra Pradesh
Advanced System in Package Technologies Private Limited (ASIP) is setting up a semiconductor manufacturing facility in Andhra Pradesh with an investment of ₹450 crore. The facility will have a production capacity of approximately 96 million units per year.
In 2028
A provision of ₹1,000 crore has been made for ISM 2.0 for the financial year 2026-27, with a special emphasis on industry-led research and training centers to promote technology development and create a future-ready skilled workforce.
A US $100 Billion Market
According to industry estimates, the Indian semiconductor market is expected to reach approximately $38 billion in 2023, $45-$50 billion in 2024-2025, and $100-$110 billion by 2030. This growth is based on the national vision of Make in India and Make for the World, which establish India as both a manufacturing base and a global supplier.
In December 2021, the Union Cabinet approved the India Semiconductor Mission 1.0, providing ₹76,000 crore. By December 2025, 10 projects with a total investment of ₹1.60 lakh crore had been approved in six states.
By 2029, India is expected to have the capacity to design and manufacture chips required for approximately 70-75 percent of domestic applications.
The Revised Program for the Development of Semiconductor and Display Manufacturing Ecosystem in India has a total financial outlay of ₹8,000 crore for 2026-27.
Against an investment of ₹11,000 crore in 2026-27, the central government will provide employment to 1,500 to 3,000 people with ₹4,000 crore.
The semiconductor industry is dominated by a few countries: Taiwan, South Korea, Japan, China, and the United States. Taiwan alone produces over 60% of the world’s semiconductors and approximately 90% of the most advanced chips.
It supports 24 semiconductor design startups across the country. Under this scheme, startups have
Approximately ₹430 crore has been raised in venture capital funding.
Approximately 22.5 million tool hours have been recorded. Approximately 67,000 students and over 1,000 startup engineers are using these tools for chip design and development.
In the academic sector, 122 designs have been developed, including 56 chips fabricated at 180 nm at the Semiconductor Laboratory in Mohali.
Startups have completed 16 tapouts, producing six chips on advanced foundry nodes, including advanced technologies as small as 12 nm. Academic institutions have filed 75 patents, while startups have filed 10, reflecting a growing culture of innovation and intellectual property creation. Fifty fabless semiconductor companies are to be enabled. The Chips to Startups program helps 397 universities and startups access the latest electronic design automation tools. Using these tools, chip designers from over 46 universities have designed and fabricated 56 chips at the Semiconductor Laboratory in Mohali. 100,000 engineers are to be trained, of which over 62,000 have already been trained. 60,000 trained professionals will be created over ten years.
Arjun Modhwadia
State Science and Technology Minister Arjun Modhwadia said that Gujarat will organize Semiconnect 2026, advancing semiconductor projects worth ₹100,000 crore (₹1.24 lakh crore). The Semiconnect Conference 2026 was held in Gandhinagar on March 1 and 2.
Investors included Dr. Randhir Thakur of Tata Electronics, Sanjay Mehrotra of Micron Technology, G. of CG Power & Industrial Solutions. C. Chaturvedi, Ramesh Kannan of Ken Semicon, and Ajay Manocha, President and Chief Executive of SEMI, were present.
GIFT will facilitate semiconductor financing and research through IFSC.
SEMI, JETRO, KOTRA, India Semiconductor Mission, ELCINA, IESA, ICEA, MEDEPC, and Invest India participated in the conference. (Google translation from Gujarati)
