Rajasthan govt unveils Semiconductor Policy document to boost investment and create jobs

Jaipur, March 24 (IANS) Advancing on the path of technological progress and economic growth, the Rajasthan government, on Tuesday, unveiled the document for "Rajasthan Semiconductor Policy-2026", government officials said.
 

Recognising the semiconductor industry as the backbone of modern technology and a key driver of the global economy, the policy aims to significantly boost investment, generate employment, and promote skill development and technological innovation across the state, officials added.

With the growing importance of semiconductors across sectors such as electronics, telecommunications, automobiles, defence, and the digital economy, the policy is set to position Rajasthan as a major hub for semiconductor manufacturing. 

It is expected to attract investments in key sectors, including Outsourced Semiconductor Assembly and Test (OSAT), Assembly, Testing, Marking, and Packaging (ATMP), and sensor manufacturing, officials said.

The initiative will also promote indigenous production while creating high-quality employment opportunities in advanced technology sectors. 

The policy adopts a comprehensive approach, covering the entire semiconductor value chain -- from research and design to manufacturing, testing, and packaging. 

To support this vision, key industrial regions such as the Jodhpur-Pali-Marwar Industrial Area, Kakani Industrial Area, and other clusters will be developed as dedicated semiconductor corridors. 

These zones will offer world-class infrastructure, including reliable power, water supply, road connectivity, streamlined land allocation, and a single-window clearance system.

The policy also emphasises the development of semiconductor parks and the strengthening of the 'fabless' design ecosystem, officials added. 

To encourage investment, the policy introduces a range of incentives under the Semiconductor Manufacturing Package. 

These include 100 per cent exemption on electricity duty for seven years, 75 per cent exemption on stamp duty and land conversion charges, and 25 per cent reimbursement of such costs.

Additionally, industries will benefit from a grant equivalent to 60 per cent of the capital subsidy approved under the India Semiconductor Mission, along with a five per cent interest subvention on term loans to promote capital investment.

The policy also integrates environmental sustainability with industrial growth, officials said. 

Eligible industries will receive 50 per cent reimbursement of expenditure on environmental protection measures, 100 per cent electricity duty exemption for seven years for projects using captive renewable energy, and a 50 per cent concession on consent fees under the Rajasthan Green Rating System.

National initiatives such as 'Make in India', 'Electronic Systems Design and Manufacturing' (ESDM), the 'Semicon India Program', and the 'India Semiconductor Mission' have already laid a strong foundation for the sector. 

With an allocation of Rs 40,000 crore under "India Semiconductor Mission 2.0" and continued support through the Production Linked Incentive (PLI) scheme, India is steadily advancing toward becoming a global technology leader. 

Through the Rajasthan Semiconductor Policy-2026, the state is poised to play a significant role in this national vision, officials from Chief Minister's Office said..