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Gujarat Semiconductor Policy (2022-27)



The GOI has set up the India Semiconductor Mission (ISM) and has launched four schemes viz. we called "ISM-FOUR"


  1. Scheme for setting up of Semiconductor Fabs in India

  2. Scheme for setting up of Display Fabs in India

  3. Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India

  4. Design Linked Incentive (DI-I) Scheme

The Scheme for Semiconductor Fabs pledges up to 50% support in the project cost on pari-passu basis and the Scheme for Display Fabs provides support of up to 50% of project cost up to 12,000 Cr. per project. Further, the Government of India has allocated funds to the tune 76,000 Cr. for these four schemes.


The Government of Gujarat is desirous of becoming the pioneer State in realizing the Government of India's mission to make India a global hub for ESDM sector and help in creating a robust semiconductor and display manufacturing ecosystem, equaling that of the existing East Asian region.


GUJARAT SEMICONDUCTOR POLICY


The Gujarat Semiconductor Policy (2022-27) will facilitate the eligible projects for land allotment, enable expedited process approvals, ready access to utilities such as power, water, gas and other industrial infrastructure besides the fiscal incentive support package under this policy. To make Gujarat a pioneer State in developing the Indian ESDM ecosystem by facilitating effective and timely execution of the eligible projects for setting up of a robust Semiconductor and Display Fab Ecosystem, and thereby creating more employment giving boost to socio-economic development of the State.


Operative Period of the Policy: 5 year (2022-27)


Eligible Project: Project approved under the following schemes:

  1. Scheme for setting up of Semiconductor Fabs in India

  2. Scheme for setting up of Display Fabs in India

  3. Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India.

Project under Design Linked Incentive (DI-I) Scheme (Not Eligible).


Eligible Capital Expenditure: It's limited to capital expenditure/investment incurred on activities under the respective schemes.


INCENTIVES AND OFFERINGS:

It divides into three parts:


1. DHOLERA SEMICON CITY

The Government is committed towards the development of a robust infrastructure for the semiconductor and display industry in the State. To this effect, the Government shall strive to develop an ecosystem at Dholera SIR which will supplement the Semiconductor and Display Industry through Industry 4.0-enabled common infrastructure facilities such as IOT-enabled warehousing, common semiconductor marking and packaging facilities, advanced testing labs and other Semicon such common facilities as required by the industry. Such a development plan shall and be formulated Government. and However, executed in the in collaboration initial phase of development of this industry.

2. FISCAL INCENTIVE

A. CAPITAL ASSISTANCE

Eligible to receive an additional 40% of the capex capital assistance from the State Government over and above the assistance given by the GOI.


B. SUBSIDY ON LAND PROCUREMENT

75% subsidy on the first 200 Acres of land required for a FAB project (Additional land shall be available at 50% subsidy).


C. STAMP DUTY AND REGISTRATION FEE

Entitled to a One-time reimbursement of 100% of stamp duty and registration fee paid to the government.


D. POWER TARIFF AND ELECTRICITY DUTY

Portable water at the rate of Rs 12 per cubic meter for a period of 5 years.

E. POWER TARIFF AND ELECTRICITY DUTY

Power tariff subsidy Rs 2 per unit for a period of 10 years.


F. CONSTRUCTION OF CLEAN ROOM / COMMON FACILITIES CENTER


3. NON-FISCAL INCENTIVE

  1. Enhancing Ease of Doing Business — Self Certification

  2. Enhancing Ease of Doing Business — Single Window Clearance

  3. Effluent and hazardous waste management

  4. Uninterrupted Power Supply

  5. Uninterrupted Water Supply

  6. Facilitation in land procurement



Smart Business, Subsidize Business!!!





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