Rajasthan Government Unveils Dedicated Semiconductor Policy

The Rajasthan government, under Chief Minister Bhajanlal Sharma, announced a dedicated semiconductor policy on March 24-25, 2026, positioning the state as a key node in the global semiconductor supply chain. The policy aligns with national initiatives including Make in India and the India Semiconductor Mission (ISM).

Background

  • India is accelerating efforts to reduce dependence on imported chips and build a domestic semiconductor ecosystem
  • The global semiconductor industry is undergoing a supply chain realignment, with countries competing to host fabrication units
  • The India Semiconductor Mission under the Union Government provides the national framework for attracting chip manufacturers

Key Policy Features

  • Capital subsidies for semiconductor manufacturing units
  • Land allocation at concessional rates for chip fabrication and allied industries
  • Power tariff benefits to offset the high energy costs of chip manufacturing
  • Streamlined single-window clearances to reduce regulatory hurdles and speed up project approvals

Why Rajasthan?

  • Strategic geographic location connecting major industrial corridors
  • Abundant land availability for large-scale fabrication facilities
  • Improving infrastructure including connectivity, power, and water supply
  • Alignment with the state's broader industrialization push

Significance

The policy aims to achieve three core objectives:

  • Attract large-scale global investment into chip manufacturing and allied sectors
  • Drive technological innovation within the state
  • Generate high-skilled employment opportunities for Rajasthan's youth

This positions Rajasthan alongside states like Gujarat and Karnataka in the race to become India's semiconductor hub.