30 Japanese Firms to Invest for Semiconductor Plants in Gujarat

Union Minister Ashwini Vaishnaw announced that around 30 Japanese companies are setting up manufacturing units in Gujarat to supply critical materials for India’s burgeoning semiconductor industry. This strategic investment underscores Gujarat’s emergence as the hub for India’s semiconductor manufacturing ecosystem, with a total investment of ₹1.25 lakh crore in the sector.

Japanese Investment in Gujarat Semiconductor Ecosystem

The Union Minister stated that due to this ecosystem, around 30 Japanese companies are setting up units in Gujarat to supply chemicals, gases, and substrates that are needed, with the “ultra-pure” materials used in the industry measured in “parts per billion”, which will raise quality standards for other industries like pharma and chemicals as well.

Investment Overview

Supporting Four Major Chip Plants

These Japanese component makers will support four major semiconductor projects in Gujarat, including the Tata Electronics plant in Dholera, Micron manufacturing center in Sanand, and plants of CG Power and KEC. The establishment of this supply chain ecosystem is crucial for creating a self-reliant semiconductor manufacturing base in India.

The ultra-pure chemicals and substrates supplied by these Japanese firms meet the highest quality standards, measured in parts per billion, ensuring the precision required for chip manufacturing. This level of purity will also elevate quality benchmarks in India’s pharmaceutical and chemical industries.

Gujarat: India’s Semiconductor Hub

Vaishnaw stated that Gujarat is becoming a foundation pillar of India’s development journey in the fields of semiconductors, modern logistics, and electronics manufacturing, adding that Gujarat is a hub of semiconductors, electronics and logistics, which will make India a leader in the direction of making it a developed nation by 2047.

The state has attracted proposals worth ₹1,15,000 crores under the Central Electronics Component Manufacturing Scheme, demonstrating strong industry confidence in Gujarat’s semiconductor ecosystem.

Complete Value Chain Development

Training on advanced semiconductor tools and 5G labs has started at Ganpat University and over 12 colleges, creating a complete value chain from talent development to design and manufacturing. This comprehensive approach ensures that India not only has manufacturing facilities but also the skilled workforce to operate them.

The establishment of training centers at educational institutions ensures a steady pipeline of qualified professionals for the semiconductor industry, addressing one of the critical challenges in scaling up chip manufacturing.

Clean Energy Advantage

Vaishnaw praised Gujarat for its pioneering role in the clean energy sector, particularly mentioning the world’s largest green energy project at Khawada, Kutch. He emphasized that when global manufacturers ask whether production is powered by clean energy, “Gujarat has a clear and powerful answer.”

This clean energy infrastructure gives Gujarat a competitive advantage in attracting global semiconductor companies increasingly focused on sustainable manufacturing practices.

Strategic Significance

The Japanese investment represents a significant vote of confidence in India’s semiconductor ambitions and strengthens bilateral economic ties between India and Japan. With four major chip plants coming up and 30 Japanese suppliers establishing operations, Gujarat is positioning itself as a complete semiconductor manufacturing ecosystem capable of competing globally.

This development aligns with India’s vision of becoming self-reliant in semiconductor manufacturing and reducing dependence on imports, particularly critical given global chip shortages experienced in recent years.

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