Rajasthan eyes global semiconductor leadership as state launches first chip manufacturing cluster in Bhiwadi

Jaipur, May 19 Rajasthan is rapidly emerging as India's next major semiconductor and electronics manufacturing destination, with the Bharatiya Janata Party-led state government on Tuesday unveiling ambitious plans to transform the state into a high-technology hub.

Marking a significant milestone in the state's industrial journey, Rajasthan's first semiconductor cluster has been launched in Bhiwadi, signaling a decisive shift from traditional industries toward a technology-driven economy aligned with the vision of "Viksit Rajasthan-2047".

Officials say the initiative represents a major step toward integrating Rajasthan into the global semiconductor supply chain while creating large-scale employment, investment, and skill development opportunities for the state's youth.

The Greenfield Electronics Manufacturing Cluster, established by a private firm in the Salarpur-Khushkhera region of Bhiwadi, is being jointly developed by 20 companies and has emerged as Rajasthan's first semiconductor cluster as well as the country's first semiconductor facility focused on Small and Medium Enterprises (SMEs).

The project has already attracted investment proposals worth more than Rs 1,200 crore. As of now, 11 companies have commenced operations with investments totaling around Rs 900 crore, generating employment opportunities for nearly 2,700 people.

The cluster houses industries engaged in semiconductor packaging, electronic components, Radio Frequency Identification (RFID) products, Electric Vehicle components, and air-conditioner manufacturing.

Officials said the facility currently has an annual semiconductor packaging capacity of nearly 60 million units, which is expected to expand to between 400 million and 600 million units within the next two to three years.

Plans are also underway to manufacture products using advanced packaging technologies along with SSDs, DRAMs, and other data-storage solutions.

The state government believes the recently launched Rajasthan Semiconductor Policy-2026 is playing a crucial role in positioning the state as a preferred destination for semiconductor and electronics investments.

Under the policy announced in March 2026, Rajasthan is developing semiconductor corridors in regions, including Jodhpur-Pali-Marwar and the Kankani Industrial Area.

Industries are being offered faster land allotment, infrastructure support, uninterrupted electricity and water supply, improved connectivity, and Single Window clearances to facilitate rapid industrial growth.

The policy specifically targets investments in areas such as Outsourced Semiconductor Assembly and Test (OSAT), Assembly, Testing, Marking and Packaging (ATMP), sensors, and advanced electronics manufacturing.

The semiconductor sector has become strategically critical worldwide, powering everything from smartphones and electric vehicles to artificial intelligence systems, defence technologies, and advanced computing.

Until now, countries such as the US, China, Taiwan, and South Korea have dominated the global semiconductor ecosystem.

India's "India Semiconductor Mission", launched in 2021, marked the country's push toward technological self-reliance.

The Union Budget 2026–27 has further allocated Rs 1,000 crore for "India Semiconductor Mission 2.0", with a focus on industry-led research, training centres, and workforce development.

Officials say Rajasthan's semiconductor expansion aligns closely with the national mission and will help India strengthen its role across the entire semiconductor value chain, including chip design, packaging, research, equipment manufacturing, and global supply networks.

The semiconductor push is also expected to generate significant employment opportunities in fields such as electronics engineering, chip design, robotics, machine automation, artificial intelligence, quality control, and advanced manufacturing.

The Rajasthan government is simultaneously focussing on skill development programmes to ensure the state's youth are prepared for careers in emerging high-technology industries.

Officials said the long-term vision is not only to attract global investment but also to establish Rajasthan as a centre for innovation, entrepreneurship, and advanced electronics manufacturing in India.

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