Aligning with India's Semiconductor Mission, Gujarat became the first state to introduce its semiconductor policy in 2022, with several companies from Japan, South Korea, and those based out of New Delhi and Bengaluru expressing interest in investing in the sector during events organised ahead of the upcoming Vibrant Gujarat Global Summit 2024, officials said.

As per a government release, the state's semiconductor policy aims to play a significant role in the global realignment of supply chains in the strategic sector and raise India's economic position.

Chip maker Micron Technology's decision to set up a $2.75-billion plant at Sanand near Ahmedabad indicates that Gujarat's dedicated semiconductor policy is bearing fruit and attracting global players, it said.

In July last year, Gujarat announced a dedicated policy to draw new investments in the semiconductor sector by offering incentives and subsidies to start operations in the state.

The government has used roadshows and delegation visits organised ahead of the 10th edition of the Vibrant Gujarat Global Summit to express its commitment towards the growth of the sector, the release said.

Several companies from Japan, South Korea, and the ones based in New Delhi and Bengaluru have expressed interest in the sector in the state, it stated "These companies have shown their enthusiasm towards the research and development in semiconductor industries, assembly testing, packaging, and the manufacturing of critical components which are valuable for the semiconductor industry along with developing engineering/technology centres," it said.

Follow-up discussions with international and domestic companies are underway to set up additional large-scale projects in Gujarat, it said.

Chief Minister Bhupendra Patel has credited the Vibrant Gujarat Summit for the state's commitment to the semiconductor industry.

In his speech at the groundbreaking ceremony for Micron Technology's plant at Sanand near Ahmedabad in September, Patel said there was a lot of interest in semiconductor technology.

"It's the historic day of the Micron plant's inauguration in Sanand. This historic day will be remembered for taking Sanand and Gujarat to new heights," he had said.

During a curtain-raiser event for the Vibrant Gujarat summit organised in New Delhi, the chief minister had said that state had emerged as the "most preferred destination" for producing semiconductors and display fabs.

The semiconductor policy, which will remain in force till 2027, aims to generate over 200,000 employment opportunities in the next five years.

The policy has been designed in line with the Centre's 'India Semiconductor Mission' to attract and facilitate new projects in the sector and meticulously crafted to facilitate and promote manufacturing activities in Gujarat, the release stated.

Union Minister of State for Skill Development and Entrepreneurship Rajeev Chandrashekhar has also acknowledged the state's commitment to the semiconductor sector.

"Narendra Modiji passed a policy in January 2023, so we have big units and plants like Micron coming up in Gujarat. There are over 30 design startups that have come up. We are going to set up a new Indian semiconductor research centre to focus on research," the Union minister had said.

Sanjay Mehrotra, CEO of Micron Technology, had earlier said the company is proud to represent its commitment to build a semiconductor assembly and test facility for memory in Gujarat, and this is the first major semiconductor company investment in the nation.

"Our team here in Gujarat will transform DRAM and NAND products into finished component packages, memory modules and solid-state storage drives ready to ship to end customers in India and across the world," Mehrotra had said at the SemiconIndia 2023 organised in July this year in Gandhinagar.

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