The Gujarat government has proposed an investment of nearly Rs 460 crore for a dedicated electronics manufacturing cluster (EMC) in Sanand, Ahmedabad district. This initiative is designed to bolster the state's aspirations of becoming a leading semiconductor and electronics manufacturing hub.
Cluster Details and Job Creation
The proposed cluster will be developed over 91.53 hectares, primarily in Hirapur and Charal villages of Sanand taluka. According to official proposal documents submitted by the Gujarat Industrial Development Corporation (GIDC) to the Union government, the cluster is expected to generate more than 16,000 permanent jobs once operational.
Rationale Behind the Project
GIDC, which is spearheading the project, cited the rapid influx of semiconductor and electronics investments in and around Sanand as the primary driver. In recent years, Sanand has emerged as a preferred destination for high-technology manufacturing, particularly in semiconductors. Companies such as Micron Technology, Kaynes Technology, and CG Power and Industrial Solutions have announced plans to set up semiconductor and electronics facilities in the region. Recently, the cabinet approved semiconductor projects worth Rs 3,900 crore for Sanand.
According to the proposal, the growing concentration of semiconductor and electronics units in Sanand necessitated a dedicated ecosystem to cater to the sector's infrastructure and operational requirements. The establishment of an EMC will ensure focused attention on the needs of these companies and help create a robust ancillary ecosystem.
Industry Perspectives
Industry experts believe the move could accelerate investments into Gujarat's electronics value chain and strengthen supply chain integration for semiconductor manufacturing. Sudhir Naik, head (mid-west region) at India Electronics and Semiconductor Association (IESA), noted that India has historically been heavily dependent on semiconductor imports and has 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, Naik said this opens the door for large-scale electronics manufacturing and greater value addition within the country. He highlighted that 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 between 2,000 and 3,500 chips. These are integrated systems powering mobility, appliances, and charging infrastructure.
Naik added that 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. The electronics manufacturing cluster will further aid in developing a resilient value-added manufacturing ecosystem in the semiconductor and electronics sector.
