Rajasthan has taken a decisive step toward becoming India's next major semiconductor manufacturing hub, with the Bharatiya Janata Party (BJP)-led state government on Tuesday, 19 May formally unveiling the state's first semiconductor cluster in Bhiwadi. The move signals a structural shift from Rajasthan's traditional industrial base toward a high-technology economy anchored in the vision of 'Viksit Rajasthan-2047'.

The cluster, a greenfield electronics manufacturing facility established in the Salarpur-Khushkhera region of Bhiwadi, is being jointly developed by 20 companies and carries the distinction of being not only Rajasthan's first semiconductor cluster but also India's first semiconductor facility focused on Small and Medium Enterprises (SMEs).

Investment and Operations So Far

The project has already drawn investment proposals worth more than ₹1,200 crore. Of these, 11 companies have commenced operations with cumulative investments of approximately ₹900 crore, generating employment for nearly 2,700 people.

The cluster currently hosts industries engaged in semiconductor packaging, electronic components, Radio Frequency Identification (RFID) products, Electric Vehicle (EV) components, and air-conditioner manufacturing. Its annual semiconductor packaging capacity stands at nearly 60 million units, with plans to scale this 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, alongside SSDs, DRAMs, and other data-storage solutions.

The Policy Framework Driving the Push

State officials say the Rajasthan Semiconductor Policy-2026, announced in March 2026, is central to positioning the state as a preferred investment destination for chip and electronics manufacturers. Under the policy, the state 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 investment in Outsourced Semiconductor Assembly and Test (OSAT), Assembly, Testing, Marking and Packaging (ATMP), sensors, and advanced electronics manufacturing.

Alignment with the National Semiconductor Mission

Rajasthan's push dovetails with India's broader ambitions in chip manufacturing. The India Semiconductor Mission, launched in 2021, marked the country's first concerted effort toward technological self-reliance in semiconductors. The Union Budget 2026–27 has further allocated ₹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 expansion aligns closely with the national mission and will help India strengthen its role across the full semiconductor value chain — spanning chip design, packaging, research, equipment manufacturing, and global supply networks. This comes amid intensifying global competition for semiconductor self-sufficiency, with the United States, China, Taiwan, and South Korea having long dominated the ecosystem.

Employment and Skill Development Outlook

Beyond the factory floor, the semiconductor push is expected to create opportunities in electronics engineering, chip design, robotics, machine automation, artificial intelligence, quality control, and advanced manufacturing. The state government is simultaneously running skill development programmes to ensure Rajasthan's youth are equipped for careers in these emerging sectors.

Officials say the long-term vision extends beyond attracting global capital — the goal is to establish Rajasthan as a centre for innovation, entrepreneurship, and advanced electronics manufacturing, with Bhiwadi's new cluster as the first proof point.