9APRIL 2026RAJASTHAN SEMICONDUCTOR POLICY UNVEILED TO BOOST TECH INVESTMENTAC MAKERS FACE COST SURGE AS LPG CRUNCH DISRUPTS SUPPLYThe Rajasthan semiconductor policy took center stage today as the state government unveiled a new plan to turn Rajasthan into a major hub for chip manufacturing and tech innovation.The announcement aims to boost investment, create highskill jobs, and strengthen semiconductor ecosystem across research, design, testing and production.Chief Minister Bhajan Lal Sharma said the policy positions the state to compete in the global semiconductor industry and spur technological growth. The focus is on attracting investment in key areas such as Outsourced Semiconductor Assembly and Test (OSAT), Assembly, Testing, Marking and Packaging (ATMP), and sensor manufacturing parts of the semiconductor value chain with strong growth potential.India's air conditioner industry is heading into the summer season with growing concerns over rising costs and supply challenges, as a shortage of liquefied petroleum gas (LPG) begins to affect production.LPG plays a key role in the manufacturing process of air conditioners, especially in tasks like brazing copper components. With supplies tightening due to global supply disruptions--largely linked to tensions in West Asia manufacturers are finding it harder to secure the fuel they need. This comes at a crucial time, when companies are preparing to meet the usual spike in demand during the hotter months.To support this strategy, Rajasthan will build dedicated semiconductor corridors in industrial hotspots such as the JodhpurPaliMarwar belt and Kankani area, equipped with modern infrastructure, singlewindow clearances and ready land allotments for investors. Officials said this will cut delays and improve ease of doing business for domestic and foreign firmsThe state's new semiconductor policy backs bigticket incentives to lure companies. It includes a 100 percent exemption from electricity duty for seven years, up to 75 percent rebates on stamp duty and land conversion charges, and capital subsidies up to 60 percent under the India Semiconductor Mission. Interest subsidies of around 5 percent on loans are also on offer.Rajasthan is also pushing sustainability incentives, including up to a 50 percent reimbursement for environmentally friendly projects and rewards for using renewable energy. Government officials said this approach will not only spur economic growth but also create thousands of jobs in hightech sectors and related industries.The state's semiconductor policy complements India's national push under initiatives like Make in India and the India Semiconductor Mission, and is expected to enhance Rajasthan's footprint in a sector critical to modern electronics and digital transformation. Industry experts say the shortage is not just about availability but also about rising costs. Since India energy imports remain high, any disruption in global supply chains tends to push prices higher. As a result, AC manufacturers are now dealing with increased production expenses, forcing them to rethink pricing and operations.The impact is already visible across the sector. Some companies are facing delays in sourcing materials, while others are exploring alternative options to keep production running. However, substitutes for LPG in certain manufacturing processes are limited, making it difficult to fully offset the problem. If the situation continues, it could lead to slower production or AC supply shortages in the market.Adding to the pressure, the cost of other key raw materials, such as copper, has also gone up. Together, these factors are squeezing profit margins and pushing companies to pass on at least part of the cost increase to consumers. This means buyers may see AC price hike trends this summer.At the same time, demand remains strong. Rising temperatures, frequent heatwaves in India, and growing awareness about cooling solutions are expected to drive summer AC demand. However, the current supply challenges could make it harder for companies to fully meet this demand.
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