In line with Prime Minister Narendra Modi’s vision for a Viksit Bharat by 2047, the Gujarat government, under Chief Minister Bhupendra Patel, introduced India’s first ‘Gujarat Semiconductor Policy 2022-2027.
To drive the success of this policy, Gujarat has established the ‘Gujarat State Electronics Mission’, an institution focused on enhancing the state’s semiconductor self-sufficiency. Under CM Patel’s guidance, the foundation stone for Micron’s advanced semiconductor ATMP facility was laid in Sanand, representing an investment exceeding Rs.22,500 crore.
Here are the key stocks to benefit from Gujarat’s semiconductor policy:
CG Power and Industrial Solutions Ltd
With a market capitalization of Rs.1.08 lakh crore, the share price of CG Power and Industrial Solutions Ltd jumped to Rs. 728.55 per share on Thursday, rising 1.6 percent from its previous close.
CG Power and Renesas Electronics are partnering to establish a cutting-edge Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, with an investment of over Rs.7,600 crore (around $920 million).
Spanning approximately 28 acres, the facility is projected to produce 15 million semiconductor units daily, offering a range of packages from legacy types like QFN to advanced options such as FC BGA.
In this joint venture, CG Power will hold a majority stake of 92.3 percent, while Renesas and Stars Microelectronics will hold minority stakes. This project aims to strengthen India’s semiconductor industry and create approximately 5,000 jobs in the area.
In Q2 FY25, the company reported consolidated revenue from operations of Rs. 2,413 crore, rising 21 percent YoY. However, the net profit decreased 10 percent to Rs. 220 crore in the same period.
Kaynes Technology India Ltd
With a market capitalization of Rs. 37,041.4 crores, the share price of Kaynes Technology India Ltd jumped to Rs. 5,954.65 per share on Tuesday, rising 3.2 percent from its previous close.
The Gujarat government has approved a new semiconductor facility by Kaynes Semicon Pvt Ltd in Sanand, with an investment of Rs. 3,300 crore. This plant is expected to produce about 6 million chips daily, serving industries such as automotive, consumer electronics, and telecom.
This project aligns with India’s larger Semiconductor Mission, which has a total allocation of Rs. 76,000 crore to build a robust semiconductor ecosystem. The funding breakdown includes 50 percent from the central government, 20 percent from the Gujarat government, and 30 percent from Kaynes Semicon.
In Q2 FY25, the company reported consolidated revenue from operations of Rs.433 crore, rising 48 percent YoY. However, the net profit increased 152 percent to Rs.63 crore in the same period.
Tata Electronics Private Limited
Tata Electronics Pvt. Ltd., a subsidiary of the Tata Group, founded in 2020 is headquartered in Bangalore, Karnataka. The company specializes in high-volume precision manufacturing, with a strong focus on the electronics and semiconductor industries.
Tata Electronics Private Limited (TEPL) is partnering with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to establish India’s first AI-enabled semiconductor fabrication plant in Dholera, Gujarat, with an investment of over Rs.91,000 crore (approximately $11 billion).
This facility will have the capacity to produce up to 50,000 wafers per month, catering to the increasing semiconductor demand across multiple industries. The collaboration seeks to boost India’s semiconductor self-sufficiency and lessen import reliance.
Expected to create over 20,000 direct and indirect jobs, the fab will leverage AI and data analytics for efficient production. Leaders from both companies highlight the venture’s strategic significance for fostering innovation and enhancing India-Taiwan trade relations.
Written by – Siddesh S Raskar
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