The Gujarat government’s ambitious drive to position itself as India’s semiconductor hub has attracted significant investments from industry giants, but MSMEs remain on the sidelines. With commitments worth Rs 1.26 lakh crore, the state has secured its foothold in the semiconductor industry. Yet, stringent entry conditions continue to deter smaller players. Industry insiders say these high thresholds create significant barriers for cash-strapped MSMEs, compounded by a lack of incentives for research and development.