Ahmedabad: The Gujarat govt has proposed to invest nearly Rs 460 crore for a dedicated electronics manufacturing cluster (EMC) in Sanand. The move is aimed at strengthening the state’s ambitions of emerging as a major semiconductor and electronics manufacturing hub.The proposed cluster, planned over 91.53 hectares situated mainly in Hirapur and Charal villages of Sanand taluka in Ahmedabad district, is expected to create more than 16,000 permanent jobs once operational, according to official proposal documents submitted by the Gujarat Industrial Development Corporation (GIDC) to the Union govt.GIDC, which is spearheading the initiative, has cited the rapid influx of semiconductor and electronics investments in and around Sanand as the primary reason behind the project.In recent years, Sanand has emerged as a preferred destination for high-technology manufacturing investments, particularly in the semiconductor sector. Companies such as Micron Technology, Kaynes Technology and CG Power and Industrial Solutions have announced plans to set up semiconductor and electronics-related facilities in the region. More recently, the cabinet approved semiconductor projects worth Rs 3,900 crore for Sanand.”The growing concentration of semiconductor and electronics units in Sanand, the need was felt for a dedicated ecosystem capable of catering specifically to the infrastructure and operational requirements of the sector. The establishment of an EMC will ensure focused attention on the needs of semiconductor and electronics companies and help create a robust ancillary ecosystem,” according to the proposal.Industry experts believe the move could further accelerate investments into Gujarat’s electronics value chain and strengthen supply chain integration for semiconductor manufacturing.“So far, India has remained heavily dependent on semiconductor imports and has largely evolved as a service-oriented economy rather than a product-driven one. Design and intellectual property creation for embedded products have traditionally flourished in North America and other global hubs, while India has had limited IP ownership in this space. With semiconductor chips now set to be manufactured and packaged domestically, this opens the door for large-scale electronics manufacturing and greater value addition within the country,” said Sudhir Naik, head (mid-west region) at India Electronics and Semiconductor Association (IESA).“Gujarat has a huge automotive industry, and the semiconductor opportunity is closely linked to that growth. A conventional vehicle typically uses 500 to 700 chips, while electric vehicles may require anywhere between 2,000 and 3,500 chips. These are not merely chips, but integrated systems powering mobility, appliances and charging infrastructure. Earlier, high costs and inventory requirements were major barriers to electronics manufacturing, but that is changing rapidly. As global companies look to diversify supply chains, India is emerging as a viable alternative and the electronics manufacturing cluster will further aid in developing a resilient value-added manufacturing ecosystem in semiconductors and electronics sector,” he added.
