“Gujarat’s Electronics Component Manufacturing Policy-2025 aims to attract ₹35,000 crore in investments, fostering a robust semiconductor ecosystem. With four fabrication units already operational, the policy offers dual incentives, research grants, and skill development initiatives to position Gujarat as a global electronics hub, reducing import dependency and creating high-skilled jobs.”
Gujarat’s Semiconductor Surge: New Policy Targets Global Leadership
On June 22, 2025, Gujarat Chief Minister Bhupendra Patel announced the Gujarat Electronics Component Manufacturing Policy-2025 (GECMS-2025), a transformative step to cement the state’s position as India’s semiconductor powerhouse. Designed to attract ₹35,000 crore in investments, the policy aligns with the Central Government’s Electronics Components and Semiconductors scheme, aiming to bolster upstream industries and reduce India’s reliance on imported electronics.
The policy, implemented by the Gujarat State Electronics Mission (GSEM), targets key sectors like multi-layer and HDI printed circuit boards, lithium-ion cells, display and camera modules, SMD passive components, electromechanical parts, and specialized machinery. It offers turnover-linked incentives for six years and 100% top-up support for projects approved under the Ministry of Electronics and Information Technology (MeitY). Incentives will be disbursed within 30 days of Central government funding, ensuring timely support for investors.
Gujarat is already home to four semiconductor fabrication units, including Tata Electronics’ ₹91,000 crore facility in Dholera, set to produce India’s first indigenous chips by December 2026. The policy complements this ecosystem by promoting local production of components and sub-assemblies, aiming to boost exports and integrate Gujarat into global electronics supply chains.
To bridge the skill gap, GECMS-2025 provides up to ₹12.5 crore in matching grants for Gujarat-based institutions to establish Centres of Excellence, Applied Research Laboratories, and Finishing Schools. These initiatives aim to create a future-ready workforce, with the state projecting thousands of high-skilled jobs in chip design, fabrication, and assembly.
The policy also capitalizes on recent amendments to Special Economic Zone (SEZ) rules, announced on June 3, 2025, which allow semiconductor units to supply the domestic market after paying duties and reduce the minimum land requirement to 10 hectares. Micron Semiconductor’s ₹13,000 crore SEZ in Sanand is a prime example, with its first phase set to be operational by early 2025.
However, units benefiting from the existing Gujarat Electronics Policy (2022-28) are ineligible for GECMS-2025 incentives to avoid overlap. Investors must submit applications by July 31, 2025, to avail benefits, with MeitY-approved projects automatically qualifying. This strategic move is expected to enhance technological resilience and position Gujarat as a global hub for electronics manufacturing.
The policy’s launch has sparked optimism, with industry leaders like Tata Electronics and Kaynes Semicon already advancing Gujarat’s semiconductor ambitions. Kaynes is set to deliver India’s first paid chip prototype by August 2025, while Tata’s Dholera plant will generate 27,000 jobs, including 15,000 direct roles. The state’s infrastructure support, including 1,500 residential units for Tata’s staff and vendors, underscores its commitment to this tech revolution.
Disclaimer: This article is based on information from news reports, government announcements, and industry sources. The data and projections are subject to change based on policy implementation and market dynamics. Readers are advised to verify details with official sources before making investment decisions.