Dholera Leads As India’s Semicon City; Sanand Secured For Global Fabs

PM Modi will inaugurate Micron Technology’s $2.75-billion semiconductor assembly and testing (ATMP) facility at Sanand in Gujarat for commercial production on February 23

Apr 10, 2026 · 3 min read

Dholera Leads As India’s Semicon City; Sanand Secured For Global Fabs

As India’s role in the global semiconductor ecosystem continues to expand, Gujarat has stepped up preparations to develop Dholera as a Semicon City.

The state government has also decided to reserve land in the Sanand industrial area near Ahmedabad for companies keen on setting up semiconductor projects. With the convergence of India’s Semicon India Mission and Gujarat’s Semiconductor Policy, four projects have reached the production-ready stage. Among them, Micron’s Sanand-based plant is set to commence production this month.

Pankaj Patle

Chandra Bhushan

Union Minister for Electronics and IT Ashwini Vaishnaw, while attending the World Economic Forum in Davos last month, announced the start of commercial operations at Micron’s Gujarat facility. In view of this, Prime Minister Narendra Modi is likely to visit Sanand on February 23 for the operational launch of the plant. The facility, supported by both the Central and State governments, will undertake assembly, testing, and packaging (ATP) of DRAM and NAND memory chips.

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India’s Push in a Globally Dominated Sector

Traditionally, the global semiconductor industry has been dominated by Taiwan, Japan, China, and the United States. India currently imports integrated circuits, chips, and amplifiers from these countries. In the Union Budget, Finance Minister Nirmala Sitharaman allocated nearly ₹40,000 crore to the semiconductor sector. Meanwhile, the global semiconductor market has touched USD 600 billion and is projected to cross USD 1 trillion in the coming years, with India expected to play a significant role. According to Minister Ashwini Vaishnaw, India’s semiconductor market stood at USD 52 billion in 2024–25 and is projected to grow to USD 103.4 billion by 2030.

Project Pipeline and Employment Potential

India’s first semiconductor plant was approved in 2024, followed by the approval of five additional projects in 2025. A further 10 semiconductor projects are currently in the pipeline, expected to attract investments worth USD 18 billion. Semiconductor parks are also planned across the country. Recently, while unveiling the first ‘Made in India’ chip, Minister Vaishnaw expressed confidence that semiconductor production would rise by 30 per cent. On that occasion, 12 Memoranda of Understanding (MoUs) were signed. The semiconductor sector is expected to generate nearly one million jobs by 2030.

Gujarat at the Core of India’s Semiconductor Vision

During his visit to Gujarat, Minister Vaishnaw stated that production at four plants in the state would begin shortly. The Centre’s strategy is to develop Dholera as a major semiconductor manufacturing hub. The Chairman of CG Power remarked that the chips manufactured here would mark a crucial step towards India’s technological sovereignty. Chief Minister Bhupendra Patel said Gujarat is poised to become a semiconductor hub with investments worth ₹1.34 lakh crore in the coming days. He described the Sanand–Dholera belt as a “golden corridor” for semiconductor development.

Gujarat’s Semiconductor Policy and Incentives

A senior official from the Department of Science and Technology (DST) stated that the Gujarat government has introduced the Semiconductor Policy (2022–27) along with several incentive schemes to support investors. The core objective is to develop Dholera as a Semicon City. It is estimated that the sector will create nearly 200,000 jobs in Gujarat over five years. Several semiconductor assembly, testing, and packaging (ATP) plants are under construction in Sanand and Dholera, involving both domestic and international companies. Ahead of the Semicon India Seminar scheduled in New Delhi from September 17 to 19, Gujarat is also planning to host its own semiconductor-focused seminar.

10 Semiconductor Projects Approved Nationwide

The Government of India has approved 10 semiconductor projects with total investments of ₹1.6 lakh crore, including two fabrication units (fabs) and eight packaging units. These projects are at various stages of implementation, with pilot production already underway at four units. Additionally, Electronic Design Automation (EDA) tools have been introduced in 350 universities across the country, benefiting around 65,000 engineers.