Rajasthan rolls out semiconductor policy to build industrial infrastructure base

The Rajasthan government has unveiled a semiconductor policy aimed at creating a supporting infrastructure ecosystem to attract investment in chip design and manufacturing, as states step up efforts to position themselves in a strategic sector.

The policy proposes the development of dedicated semiconductor zones, with a focus on the Jodhpur-Pali belt, alongside plug and play industrial infrastructure to support fabrication units and ancillary industries. Officials said the framework is designed to cover the entire value chain, from design and testing to manufacturing.

To draw investors, the state has outlined a package of incentives including capital subsidies, tax concessions and support for land acquisition. The policy also emphasises the creation of reliable power, water supply and logistics networks, which are critical for semiconductor operations.

The move aligns with the Centre’s broader push to build domestic capabilities in electronics manufacturing and reduce dependence on imports. States have increasingly begun to compete for a share of this emerging industry by offering policy support and ready infrastructure.

Rajasthan’s initiative signals a shift in infrastructure planning beyond conventional sectors such as roads and urban development, with greater attention to industrial ecosystems that can anchor long term economic growth.