India semiconductor ambitions

Odisha, Assam approves incentives for Indian semiconductor dream

The approval of these policies is a major boost for India's chip ambitions. With a growing domestic market and a favorable investment climate, India is well-positioned to become a major player in the global semiconductor industry.
Share this STORY

Introduction

In 2022, Gujarat made a significant stride in India’s technological landscape by becoming the first state to introduce a dedicated semiconductor policy.

Recognizing the potential of the semiconductor industry, the state aimed to create an environment conducive to attracting semiconductor manufacturing companies and fostering a thriving ecosystem.

Building on Gujarat’s success, Odisha and Assam have recently followed suit, unveiling their own semiconductor policies.

These policy initiatives, driven by regional strengths and a commitment to national policies, are poised to propel India’s semiconductor industry onto the global stage.

Gujarat’s Semiconductor Success Story

Gujarat’s semiconductor policy, launched in 2022, was a watershed moment for the Indian electronics industry.

Leveraging its geographical advantage, political stability, skilled workforce, and well-developed infrastructure, the state’s policy was meticulously designed to offer a range of incentives to semiconductor manufacturing companies.

These incentives included capital and land subsidies, tax breaks, and other strategic benefits that positioned Gujarat as an attractive destination for semiconductor investment.

One notable example is Micron Technology, a leading US-based chip maker, which announced its plans for an assembly and test facility in Gujarat.

Read more: How SCL Can Help India Become a Semiconductor Powerhouse

Odisha’s Ascent in Semiconductors

Building on Gujarat’s momentum, Odisha embarked on its own semiconductor journey. With strategic investments from the UK-based SRAM & MRAM Group and collaborations with entities like the Epic Foundation, Odisha is setting the stage for semiconductor growth.

The state introduced the semiconductor manufacturing and fabless policy in July, aimed at establishing a robust semiconductor ecosystem.

The policy envisions the creation of at least one manufacturing unit and 100 fabless design companies, contributing to the generation of thousands of direct and indirect jobs in the region over the next seven years.

Assam’s Ambitious Semiconductor Policy

Assam joined the semiconductor race by approving the Assam Electronics (Semiconductor, etc) Policy 2023.

This forward-looking policy aims to transform the state into a dynamic hub for semiconductor manufacturing and electronics production.

It aligns with national policies and emphasizes market resilience, job creation, and the development of a thriving ecosystem.

By offering incentives such as capital investment subsidies, interest subsidies, and GST reimbursements, Assam’s policy is designed to attract both domestic and foreign investments in semiconductor fabrication and design.

IESA’s Collaborative Efforts

The India Electronics and Semiconductor Association (IESA) has played a crucial role in advancing India’s semiconductor landscape.

Through multi-stakeholder collaborations, IESA has partnered with state governments, such as Uttar Pradesh, to curate semiconductor and fabless policies tailored to each region’s strengths.

These policies prioritize the development of hardware centers of excellence and emphasize skill development to prepare the workforce for the evolving semiconductor landscape.

Regional Strengths and Global Ambitions

Both Odisha and Assam’s policies strategically align with their regional strengths, including skilled human resources, abundant natural resources, and strategic geographical locations.

These states are positioning themselves as attractive destinations for the Electronics System Design and Manufacturing (ESDM) industry, contributing to India’s overall electronics sector growth.

The policies’ comprehensive incentives and forward-looking strategies are expected to attract investments, foster innovation, and pave the way for India to establish itself as a global leader in semiconductor manufacturing and design.

Conclusion

The semiconductor policies introduced by Gujarat, Odisha, and Assam reflect India’s commitment to becoming a global powerhouse in the semiconductor industry.

These states have recognized the immense potential of semiconductors in driving technological advancement, job creation, and economic growth.

With focused incentives, collaborative efforts, and alignment with national policies, India’s semiconductor journey is on a promising trajectory.

As these policies continue to unfold, they are likely to shape India’s position in the global semiconductor ecosystem and contribute significantly to the country’s technological prowess.

Share this STORY