Gujarat aims to become chip-making hub
GANDHINAGAR : The Gujarat government is pitching the state as the sole destination for semiconductor manufacturing and allied investments in India, with officials having discussed with over 100 companies across the gamut of manufacturers and suppliers. “At least half-a-dozen players are in advanced discussions, including wafer fabs, display fabs, OSAT (outsourced semiconductor assembly and test) players and suppliers," a senior state government official said, asking not to be named.
“Every three months, we will be making a major announcement that will go into billions of dollars, and every month there will be some announcements of about `1,000-2,000 crore," the official added. India is encouraging global chipmakers to set up their fabrication manufacturing and or testing and packaging units in the country for which it has set aside a $10 billion financial incentive pool.
The Centre is willing to give up to a 50% subsidy on initial investments made by companies setting up chip or display fabs here under what it calls the Semicon India programme. States have offered an additional 25% subsidy on investments, in addition to subsidized land, power and other facilities, all aimed at attracting global as well as large local conglomerates interested in the space to set up shop.
US-based Micron is the first to have opted for the incentive scheme for setting up a packaging and testing unit with an investment of $825 million in the Sanand area of Ahmedabad, situated near Gujarat’s capital of Gandhinagar. “We’re in touch with at least 100 companies over the last 12 months, of which at least half a dozen of those are about to be concluded.
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