One after one other, main chip makers are deciding on Gujarat to arrange their items. Micron Technologies and Vedanta Foxconn Semiconductors Ltd each are on observe to determine their crops within the state. But why Gujarat?
According to the semiconductor trade, the Micron and Vedanta Foxconn initiatives are simply two examples of the rising curiosity in semiconductor manufacturing in Gujarat. And there are a number of the reason why Gujarat is rising as a most popular semiconductor manufacturing vacation spot.
These initiatives are anticipated to create 1000’s of jobs and generate billions of {dollars} in funding. They are an indication that Gujarat is well-positioned to turn out to be a significant participant within the international semiconductor trade.
There are 4 main components behind Gujarat changing into the popular state for the semiconductor ecosystem. These embody authorities assist, the present infrastructure, the expertise pool, location benefit, and political stability within the state.
It is believed that the Gujarat authorities has been very supportive of the semiconductor trade, providing quite a lot of incentives to draw funding. These embody subsidies on energy, water, and land, in addition to tax breaks. This is the one state in India that has a devoted semiconductor coverage.
Gujarat has a well-developed infrastructure, together with a robust energy grid, a deepwater port, and a well-connected transportation community. This makes it a sexy location for semiconductor manufacturing, which is a capital-intensive trade that requires a dependable provide of energy and a great transportation community.
Additionally, the state has a big pool of expert staff, lots of whom have expertise within the manufacturing sector. This makes it a great location for semiconductor manufacturing, which requires a talented workforce.
Industry insiders additionally level out that Gujarat is positioned within the western a part of India, which is near the foremost markets in Europe and West Asia. This makes it a great location for exporting semiconductors. Additionally, Gujarat is a politically secure state, which is essential for companies which can be investing in long-term initiatives.
Geographical benefit
Dr Sailesh Lachu Hiranandani, who’s the chairman of SRAM & MRAM Group, instructed News18: “Gujarat boasts of excellent infrastructure facilities, including well-developed industrial parks and special economic zones (SEZs) dedicated to the electronics and semiconductor sectors, offering conducive infrastructure, transportation, and logistics facilities. The state government has also taken various policies and initiatives to promote the semiconductor industry, offering incentives, tax benefits, and subsidies to attract semiconductor companies to set up manufacturing units in the state. A large market, as well as proximity to key markets in India and neighbouring countries, also plays a pivotal role here.”
Sudhir Nair, treasurer at India Electronics & Semiconductor Association (IESA) and founding father of eInfochips, Gujarat, additionally talked about some geographical benefits.
“Gujarat has a unique advantage of a 940 sq km land parcel, which is not available anywhere in India or Asia. This land is ideal for semiconductor manufacturing, which requires a lot of space,” he stated.
According to him, the supply of the canal within the coronary heart of Dholera that gives water from the Narmada Dam additionally makes this place excellent for manufacturing operations. Dholera, well-connected to Ahmedabad by street and rail, will even have a big worldwide airport, which is able to make it simple to move items and other people.
Furthermore, Nair stated: “Gujarat is a power surplus state, so there is no risk of outages. It is also a hub for chemicals and other gases, which are essential for semiconductor manufacturing.”
The coverage
Hiranandani particularly highlighted the position of Gujarat’s semiconductor coverage. According to him, it performed a big position in setting the benchmark as a most popular vacation spot for the semiconductor trade.
“The policy also supports various incentives, benefits, and provisions to encourage investments in the state, for instance, capital subsidies, interest subsidies, tax exemptions, and reimbursement of land costs,” he added.
Furthermore, the trade insider stated that the state additionally ensures the supply of world-class infrastructure amenities, together with dependable energy provide, water, telecommunications connectivity, and different facilities mandatory for semiconductor firms.
“Single-window clearance by the local government simplifies the bureaucratic procedures and reduces the time and effort required for obtaining necessary approvals, permits, and licences,” famous Hiranandani.
Overall, Gujarat has a number of benefits that make it a sexy location for semiconductor manufacturing. These benefits are prone to proceed to draw funding sooner or later, as the worldwide demand for semiconductors continues to develop.
Source: www.news18.com
