The Indian Government has notified a Special Economic Zone (SEZ) to be set up by Tata Semiconductor Manufacturing Pvt Ltd at Dholera, Gujarat, with a massive investment of ₹91,000 crore.
The project, spread across 66.166 hectares, will focus exclusively on electronic hardware, software, and IT/ITES, marking a significant milestone in India’s technology manufacturing ambitions.
India’s first chip fabrication plant takes shape
Positioned as India’s first chip fabrication plant, the SEZ is expected to generate employment for around 21,000 people. It will feature enabling infrastructure along with a dedicated approval mechanism aimed at streamlining operations and logistics, thereby enhancing efficiency for high-tech manufacturing.
Policy push strengthens semiconductor ecosystem
The approval aligns with the Government’s broader push to strengthen India’s semiconductor and electronics manufacturing ecosystem. Over the past year, several progressive reforms have been introduced under the SEZ framework to attract high-value, capital-intensive investments and foster innovation.
Key SEZ Rule amendments to boost investments
Significant amendments to the SEZ Rules, 2006, via notification dated June 3, 2025, have addressed sector-specific requirements.
These include a reduction in the minimum land requirement from 50 hectares to 10 hectares, greater flexibility in encumbrance norms, the inclusion of free-of-cost supplies in Net Foreign Exchange calculations, and the permission for domestic sales in the Domestic Tariff Area (DTA) upon payment of applicable duties.
These changes are aimed at improving ease of doing business and making India globally competitive in semiconductor manufacturing.
Pipeline of strategic semiconductor projects expands
Building on these reforms, the SEZ Board of Approval has cleared several major proposals in the semiconductor and electronics space. Notably, Micron Semiconductor Technology India Pvt Ltd is setting up a semiconductor assembly, testing, marking, and packaging (ATMP) SEZ in Sanand, Gujarat, with an investment of ₹13,000 crore. Meanwhile, Aequs Group is developing an electronic component manufacturing SEZ in Dharwad, Karnataka.
Driving domestic value chains and reducing imports
These projects are expected to catalyse domestic value chain development, create high-skilled jobs, and significantly reduce India’s dependence on semiconductor imports, laying the foundation for a robust and self-reliant electronics ecosystem.