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India Semiconductor Mission 2.0 | Dholera Emerging as India’s First Semicon City

India Semiconductor Mission 2.0 | Dholera Emerging as India’s First Semicon City Residential plot auctions
India Semiconductor Mission 2.0 | Dholera Emerging as India’s First Semicon City
By Tushar Patyal | Published on January 23, 2026

The Government of India has officially rolled out India Semiconductor Mission (ISM) 2.0, marking a major push toward building a self-reliant and globally competitive semiconductor ecosystem. Backed by a ₹40,000 crore strategic incentive framework, the mission aims to attract global chipmakers, strengthen domestic manufacturing, and reduce India’s dependence on imports.

A major spotlight under ISM 2.0 is Gujarat, particularly Dholera Smart City, which is rapidly shaping up as India’s first dedicated Semicon City. The region has already secured committed investments exceeding ₹1.25 lakh crore, positioning it as the country’s most advanced semiconductor manufacturing cluster.

Under ISM 2.0, the government is expanding support beyond fabrication plants to include chip design, advanced packaging, testing, supply chain development, and semiconductor-grade infrastructure. This integrated approach is designed to create a full-scale semiconductor value chain within India.

Dholera’s selection as a semiconductor hub is driven by its plug-and-play industrial land, reliable power and water infrastructure, proximity to ports, expressway connectivity, and policy-backed incentives. The city’s master-planned layout allows large fabs and allied units to scale operations without urban congestion risks.

Industry experts believe ISM 2.0 will significantly strengthen India’s position in the global semiconductor race, while Dholera emerges as a long-term strategic manufacturing base for electronics, EVs, defense systems, and next-generation technologies.

With policy continuity, global interest, and on-ground infrastructure progressing simultaneously, ISM 2.0 marks a decisive step toward making India a trusted semiconductor manufacturing destination.

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