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Centre Launches ISM 2.0 to Boost Gujarat’s Semiconductor Growth, Dholera Emerges as Key Beneficiary

Centre Launches ISM 2.0 to Boost Gujarat’s Semiconductor Growth, Dholera Emerges as Key Beneficiary Green building initiatives
Centre Launches ISM 2.0 to Boost Gujarat’s Semiconductor Growth, Dholera Emerges as Key Beneficiary
By Tushar Patyal | Published on February 02, 2026

New Delhi / Dholera, Gujarat — The Government of India has officially unveiled India Semiconductor Mission (ISM) 2.0, a next-phase national program backed by an investment outlay of ₹40,000 crore, aimed at accelerating semiconductor manufacturing, advanced electronics, and supply-chain development across the country.

The upgraded mission places strong emphasis on creating globally competitive semiconductor clusters, with Gujarat — particularly the Dholera Special Investment Region (SIR) — expected to emerge as a major beneficiary due to its advanced infrastructure readiness and ongoing large-scale semiconductor projects.

Under ISM 2.0, the Centre has expanded incentives for chip fabrication, packaging, testing, compound semiconductors, and electronics components, while simplifying approval mechanisms and strengthening long-term policy certainty for global investors. These measures align closely with Dholera’s positioning as a planned semiconductor and advanced manufacturing hub.

Officials highlighted that Dholera’s integrated planning — including reliable power supply, industrial water systems, logistics connectivity, and plug-and-play industrial zones — makes it well suited to support capital-intensive semiconductor facilities. The mission also supports workforce development, research collaboration, and ecosystem creation, all of which are critical for sustaining semiconductor manufacturing at scale.

Industry experts note that ISM 2.0 strengthens India’s ambition to reduce import dependence, enhance technological self-reliance, and integrate domestic facilities into global semiconductor supply chains. With anchor investments already underway in Gujarat, the policy framework is expected to attract additional global chipmakers, equipment suppliers, and downstream electronics manufacturers to locations such as Dholera.

As ISM 2.0 moves into implementation, Dholera is increasingly viewed as a long-term strategic node in India’s semiconductor roadmap, combining national policy support with state-level infrastructure execution.

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