India’s Semicon City in Dholera, Gujarat, is a flagship initiative to build the country’s first full-scale semiconductor ecosystem—combining fabs, packaging, and display manufacturing in a purpose-built smart industrial hub.
What Is Semicon City?
- Located in Dholera Special Investment Region (SIR), Gujarat
- Envisioned as India’s national semiconductor hub
- Anchored by the Gujarat Semiconductor Policy 2022–2027
- Offers massive subsidies for land, power, water, and infrastructure
Key Incentives
- 75% subsidy on first 200 acres of land for fabs
- 50% capital subsidy for desalination plants
- Rs. 2/unit power tariff subsidy for 10 years
- 100% stamp duty refund on land transactions
- Water at Rs. 12/m³ for first 5 years, with gradual increase
These incentives are designed to attract fabless firms, foundries, OSATs, and display manufacturers, making Dholera a vertically integrated chipmaking zone.
Strategic Projects & Players
- Tata Electronics + PSMC + Himax: ?91,000 crore fab project underway
- NextGen Optoelectronics: ?10,000 crore compound semiconductor and display fab
- Aaiji Group: Multiple infrastructure investments and joint ventures
- GSEM (Gujarat State Electronics Mission): Single-window clearance and regulatory support
Dholera is also part of the Delhi–Mumbai Industrial Corridor (DMIC), with expressway and cargo airport connectivity launching in 2025.
Global Interest
- Strong NRI and investor interest from US, UK, Singapore, UAE, and Hong Kong
- Dholera is positioning itself as India’s Silicon Valley, with smart grid, effluent treatment, and lifestyle infrastructure for foreign workforce
Strategic Implication
Dholera’s Semicon City could:
- Anchor India’s chip sovereignty and reduce reliance on Taiwan/China
- Enable ATP flows and packaging hubs for chiplet and photonics ecosystems
- Attract global players seeking geopolitical diversification and cost-effective scaling
It’s not just a fab site—it’s a systems-level bet on India’s rise in semiconductors. Want to explore how this might affect packaging demand or sovereign fab strategies |
