Rajasthan Positioned for Major Leap in Electronics & Semiconductor Sector: Centre and State Showcase Investment Push

Jaipur, May 2026 : A high-level dialogue on the electronics and semiconductor sector was held in Jaipur, highlighting Rajasthan’s immense potential to emerge as a major hub for electronics manufacturing. Union Electronics and Information Technology Minister Ashwini Vaishnaw said that the state has strong prospects to become a significant contributor in this rapidly expanding sector.

He noted that under the leadership of Prime Minister Narendra Modi, India is advancing rapidly in electronics manufacturing, with the establishment of 450 factories in the past two years. Under the Electronics Components Manufacturing Scheme (ECMS), 75 factories have been approved within a year, and the Union Cabinet has also enhanced the scheme’s budgetary allocation.

Addressing industry representatives, investors, and experts at the Chief Minister’s Office, the Union Minister said investors should set clear targets for establishing electronics manufacturing units. He assured that the “double-engine government” will extend full support to all such initiatives. He further emphasized that growth in this sector will generate large-scale employment opportunities.

Chief Minister Bhajanlal Sharma said that under Prime Minister Modi’s leadership, India has joined a select group of countries capable of semiconductor production. He highlighted that the India Semiconductor Mission, backed by an incentive package exceeding ₹76,000 crore, is progressing rapidly.

First Semiconductor Cluster Launched in Bhiwadi

The Chief Minister said that semiconductors play a critical role in every sector—from SIM cards to space technology, and from mobile phones to missiles. He added that the future belongs to nations and regions that build strong capabilities in this field.

He informed that Rajasthan’s first semiconductor cluster has been launched in Bhiwadi this month. Developed over 50 acres, the facility is expected to produce nearly 6 crore chips annually. So far, investment proposals worth over ₹1,200 crore from 20 companies have been received for this cluster.

Triple-S Factor to Strengthen Semiconductor Ecosystem

The Chief Minister said Rajasthan’s “Triple-S” advantage—Silica, Skill, and Solar—will prove to be a game changer for the semiconductor industry. The state has already implemented the Rajasthan Semiconductor Policy to create a strong ecosystem.

Additionally, the Rajasthan Industrial Development Policy has been approved, offering special incentives for semiconductor, data centre, and defence manufacturing sectors. Under the Rajasthan Investment Promotion Scheme 2024, industries are being provided financial and infrastructural support. Projects approved under the India Semiconductor Mission will also receive additional capital subsidies and up to 5% interest subsidy on term loans.

Silicon Valley of Rajasthan Vision

The Chief Minister announced that the Jodhpur-Pali-Marwar Industrial Area (JPMIA) and Kankani region are being developed as the “Silicon Valley of Rajasthan.” These zones will support chip design, electronics manufacturing, and system development through an integrated industrial ecosystem.

He also highlighted that Rajasthan’s proximity to the Delhi-Mumbai Industrial Corridor, along with industrial hubs like Bhiwadi, Neemrana, and Kotputli, ensures strong connectivity, supply chain efficiency, and logistics support.

The state government has further strengthened its single-window clearance system, ensuring time-bound, digital approvals for project clearances and land allocation. The Chief Minister invited investors to participate in Rajasthan’s growth journey, stating the goal of transforming the state into a $350 billion economy, with electronics and semiconductor sectors playing a leading role.

State Policy Push and Industry Support

Industry and Commerce Minister Colonel Rajyavardhan Rathore said semiconductors are the foundation of digital-era economic strength. He noted that just as oil defined the industrial age and uranium the nuclear age, semiconductors define today’s digital power structure.

He said the India Semiconductor Mission is moving forward in mission mode and Rajasthan is among the most suitable destinations for semiconductor investment. He also pointed out global supply chain disruptions during the COVID-19 period, which highlighted the urgent need for semiconductor self-reliance.

He added that OSAT (Outsourced Semiconductor Assembly and Test) and ATMP units are being incentivized through electricity duty exemptions, stamp duty relief, capital subsidies, interest support, and reimbursements for green initiatives. Projects with investments above ₹500 crore are eligible for customized packages, and land allocation processes have been simplified and made transparent.

Additional Chief Secretary Shikhar Agarwal presented the state’s industrial policies during the session. Chief Secretary V. Srinivas and senior officials from various departments, along with a large number of stakeholders, were present at the event.