- The state is is located in the western part of the country, it is quite close to West Asia and Europe’s market
- The canal that is located in Dholera will offer huge gallons of water from the Narmada dam that is very important for setting up a semiconductor fab
After the government has invited a second round of applications to set-up semiconductor and display fabs under the ‘Modified Semicon India Program’, numerous global chip manufacturers have geared up to set up their production facility in Gujarat. The recently approved Micron Technology and Vedanta Foxconn JV have already announced to begin their units in the state. But, the point is why are all these firms selecting Gujarat?
Many have opined this to be political as Gujarat is the home to PM Modi, but industry experts refuted this allegation. According to them, these upcoming semiconductor ventures are likely to generate thousands of jobs and earn revenues in billions of dollars. All these give a crystal-clear idea that Gujarat is going to be the next semiconductor hub in Asia.
There are four key reasons why this state is turning out to be the preferred destination for semiconductor hubs. They consist of huge government assistance, current infrastructure, skilled workforce, benefits of location, and most importantly, no political disturbance. Experts have also added that the government of Gujarat has provided a lot of support to the industry and provided a huge volume of investments to magnetize investment, as per an exclusive report of News18.
According to the report, huge subsidies have been provided by the government on land, power, and water, as well as tax concessions. Moreover, this is now the only state in India that has a separate policy towards the semiconductor industry. For the semiconductor manufacturers, Gujarat is an ideal destination to set-up fabs because it is furnished with cutting-edge infrastructure, a well-developed transportation ecosystem, a big water port, and a strong power grid.
The News 18 report further added that the state’s available workforces have massive proficiency in the manufacturing industry. Industry leaders have further mentioned that as the state is located in the western part of the country, it is quite close to West Asia and Europe’s market. This makes it an ideal destination for exports of semiconductors.
Sudhir Naik, treasurer at India Electronics & Semiconductor Association (IESA) and founder of eInfochips told News18 exclusively that there is a 940 sq km of land, which is not available anywhere in Asia or other parts of India. Moreover, the canal that is located in Dholera will offer huge gallons of water from the Narmada dam that is very important for setting up a semiconductor fab. Soon, Dholera will be equipped with an international airport, which will be very convenient for exporting and importing necessary items.