What is Gujarat State Electronics Mission (GSEM), and how is it attracting major investments, especially in semiconductor manufacturing? EFY’s Nijhum Rudra spoke with GSEM head Manish Gurwani to find out.
Q. As the mission director, what recent industry activities and initiatives keep you engaged?
A. I have the privilege of leading a truly transformative initiative with the Gujarat State Electronic Mission (GSEM), and its scope and responsibilities make it a pioneering body in India’s semiconductor and electronics ecosystem. GSEM has an umbrella body approach as it seamlessly integrates policy formulation, investment promotion, investor facilitation, approval processing, and incentive disbursal. We are one of India’s very few state bodies to manage the entire industry lifecycle—from approvals to subsidies. We have secured four of the five India Semiconductor Mission (ISM) projects in Gujarat.
Q. As there are challenges in growing the electronics system design and manufacturing (ESDM) and semiconductor ecosystem in the state, how do you plan to address them?
A. Robust infrastructure is often what lacks in many cases. Identifying this as a critical element, Gujarat focuses on continuous review and enhancement. Our project monitoring component ensures challenges are identified and addressed early, maintaining investor confidence and project timelines. On the skilling side, a centre of excellence (CoE) at Pandit Deendayal Energy University (PDEU) through a tripartite collaboration involving the Department of Science and Technology (DST)-GSEM, Micron, and PDEU is an excellent start. Establishing additional CoEs in other regions of Gujarat can create distributed talent pools. We encourage long-term partnerships such as internships, apprenticeships, and research and development collaborations to enhance Gujarat’s talent pipeline.
Q. Gujarat has a separate ESDM and semiconductor policy. What is itsuniqueness compared to other states?
A. Our semiconductor policy is specifically tailored to projects approved under the ISM. As a holistic scheme, the electronic policy encompasses industries across the ESDM spectrum. There are no immediate plans for merging or modifying the policies; the state demonstrates an openness to feedback from industry and academia. Moreover, acknowledging industry and academic feedback as valuable input reflects a collaborative ethos and can further strengthen the policies, aligning them with real-world challenges and opportunities.
Q. What is the total allocated land, capital expenditure (CapEx), and subsidies provided to electronics and chip investors in recent years?
A. Under the Gujarat Semiconductor Policy 2022-27, only ISM-approved projects qualify for subsidies. Gujarat relies on ISM’s scrutiny despite operating independently, minimising the industry’s burden by avoiding additional state-level checks.
You must know that we have approved a $11 billion Tata Electronics project with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) in less than 24 hours at the state government level. Concerning capital subsidy, 40 per cent of the Government of India’s subsidy amount on CapEx is contributed by Gujarat. Our policy’s uniqueness is that the first 80.9 hectares (200 acres) for semiconductor fab projects are subsidised at 75 per cent. Power and water are provided at highly competitive rates, with water priced at ₹12 per cubic metre for five years from the commercial operation date (COD), with a 10 per cent annual increase for the subsequent five years. Power subsidy will be provided at ₹2 per kWh, maintaining a high level of redundancy.
Q. What are Gujarat’s most prominent differentiating aspects, which are attracting the major semiconductor investments?
A. We are one of the very few states in India that has reliable water and power networks. Also, most importantly, our policies are well-structured and effectively implemented without bureaucratic delays. As I said, we approved the Micron project without a single-day delay.
Q. Why are Sanand and Dholera the most preferred semiconductor destinations? Which are the additional areas targeted for investments in the industry?
A. Dholera has been declared a ‘Semicon City’ by the Gujarat government, a dedicated area for semiconductor and electronics manufacturing. Major players like Tata Electronics, in collaboration with PSMC, are setting up operations here. It has world-class infrastructure for semiconductor companies coupled with a dedicated common effluent treatment plant (CETP) and sewage treatment plant (STP). The region also ensures an uninterrupted power supply that is critical for high-tech industries. Moreover, it addresses the water-intensive needs of semiconductor manufacturing, and Dholera is well-connected with other major cities. The Ahmedabad-Dholera Expressway will significantly improve accessibility. An airport in Dholera is under construction as well. However, Gujarat’s industrial growth is not confined to Dholera and Sanand. Vadodara, Rajkot, and Surat host numerous ESDM units. The 239 Gujarat Industrial Development Corporation (GIDC) estates ensure decentralised industrial development, enabling uniform growth and opportunities statewide.
Q. How will Gujarat’s electronics and semiconductor development contribute to India’s overall economy? What will be the approximate contribution to the Gross State Domestic Product (GSDP)?
A. All I can say is that Gujarat’s semiconductor industry directly contributes to India’s technological and industrial resilience. Gujarat supports the broader vision of self-reliance, aligning with ‘Atmanirbhar Bharat’ and ‘Made/Make-in-India’ goals. While investments and employment are quantifiable benefits, they are secondary to this sector’s strategic autonomy. The economic impact, though significant, serves as a byproduct of achieving self-reliance in this highly strategic domain.
Q. What would be the ratio of total employment in the coming year? Any number you would like to share for the state?
A. Out of the total committed investments of ₹1.24 trillion ($15 billion) in the semiconductor sector in Gujarat, around 53,000 jobs will be created, both direct and indirect. This includes high-skill technical jobs and support roles across various levels of the value chain. We are also doing a lot to boost skills in the state. Higher revenues and constant development are possible when you grow skills in your region. As I said earlier, the three-way model at PDEU is a successful demonstration of government, industry, and academia collaboration, wherein GSEM also contributes to both CapEx and operational expenditure (OpEx). IIT Gandhinagar, one of Gujarat’s most prestigious institutions, plays a central role in advanced research and skill-building. The government acts as a facilitator, connecting industry needs with academic resources.
