Gujarat has approved the state’s first-ever 12-hour shift exemption for Micron Semiconductor Technology India’s Sanand facility.
The weekly cap stays at 48 hours, and workers must give written consent before opting into extended shifts.
The move is framed as supporting India’s Semiconductor Mission and easing compliance for chipmakers scaling up production.
India’s chip-manufacturing push just got a scheduling overhaul. The Gujarat government has approved 12-hour work shifts at Micron Semiconductor Technology India Pvt Ltd’s Sanand facility — the first such exemption granted to any factory in the state. This is an implemented regulatory decision, not a proposal: it was signed off under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, which took effect nationwide on November 21, 2025. Crucially, the total weekly cap remains fixed at 48 hours, meaning workers logging 12-hour days simply compress their week into fewer shifts rather than working more overall hours.
Gujarat Opens the Door for Round-the-Clock Chip Production
Under the new arrangement, adult workers at the Sanand plant can opt into 12-hour shifts only through written consent, with the days they don’t work treated as paid leave. Gujarat’s Labour, Skill Development and Employment Minister Kunvarji Bavaliya framed the decision as balancing ‘Ease of Doing Business’ with worker safeguards, citing the OSH Code’s provision allowing state governments to grant exemptions to factories in the interest of economic growth and employment generation. Industry experts cited by the state government note that 12-hour shifts are already a globally accepted operating model in semiconductor manufacturing, where fabs typically run continuous production cycles to justify billions in capital equipment costs.
What This Means for Your Portfolio and Wallet
For investors tracking India’s semiconductor build-out, this is a signal that state governments are willing to adapt labor rules to attract and retain chip capital — a factor that could influence where global players choose to expand next. Faster, more flexible production scheduling can translate into shorter ramp-up times and potentially lower per-unit manufacturing costs, which matters for anyone holding exposure to semiconductor supply chains through ETFs or direct equity positions. It also underscores a broader theme: labor policy is becoming a competitive lever in the global chip race, alongside subsidies and tax breaks.
Strategic Positioning & Defense Ideas
Investors with concentrated exposure to a single semiconductor name or region may want to consider diversifying across the broader chip supply chain — equipment makers, foundries and materials suppliers — rather than betting on one facility’s operational timeline. Maintaining some cash allocation for volatility around India’s Semiconductor Mission announcements can also help cushion against policy-driven swings. Disclaimer: This analysis is for educational and informational purposes only and should not be construed as financial or investment advice.
What to Watch Next
Watch for whether other Indian states follow Gujarat’s lead in granting similar exemptions to semiconductor and electronics manufacturers, and for updates on Micron’s Sanand production timeline. Readers can follow the original reporting from The Hindu BusinessLine for further updates.
