First Chip Fab SEZ by Tata in Gujarat Notified

·         First semiconductor fab SEZ: Government has approved an SEZ by Tata Semiconductor Manufacturing Private Limited at Dholera, Gujarat—India’s first chip fabrication plant.

·         Project scale:

o    Land: 66.166 hectares

o    Investment: ~₹91,000 crore

o    Employment: ~21,000 jobs

·         Scope of operations:

o    Electronic hardware manufacturing

o    Software and IT/ITES services

o    Integrated infrastructure with streamlined approvals

Policy Push & Reforms

·         Led by Ministry of Electronics and Information Technology through SEZ policy reforms

·         Key amendments to SEZ Rules, 2006 (June 2025):

o    Minimum land reduced: 50 → 10 hectares

o    Relaxed land encumbrance norms

o    Inclusion of free supplies in Net Foreign Exchange calculations

o    Allowed domestic sales in DTA with duties

·         Objective:

o    Promote high-value semiconductor investments

o    Boost ease of doing business

o    Build a globally competitive electronics ecosystem

Other Key Approved Semiconductor SEZs

·         Micron Semiconductor Technology India Pvt Ltd (Sanand, Gujarat)

o    ₹13,000 crore investment

o    Focus: Assembly, Testing, Marking & Packaging

·         Aequs Group (Dharwad, Karnataka)

o    Electronics component manufacturing

·         CG Semi Pvt Ltd

o    OSAT (chip assembly & testing)

·         Kaynes Semicon Pvt Ltd

o    Semiconductor assembly & testing

Strategic Impact

·         Reduces import dependence in semiconductors

·         Builds domestic value chains

·         Generates high-skilled employment

·         Positions India as a global semiconductor hub

Key Takeaway

With its first chip fabrication SEZ and a pipeline of semiconductor projects, India is making a major strategic push into advanced electronics manufacturing, backed by policy reforms and large-scale investments.

 

[ABS News Service/17.04.2026]

Government has notified that an SEZ to be set up by M/s. Tata Semiconductor Manufacturing Private Limited exclusively for Electronic Hardware and Software including IT/ITES at Dholera, Gujarat. The SEZ will be spread over 66.166 hectares of land and is poised to provide employment to 21000 persons. The SEZ is designed to support electronic hardware, software, and IT-enabled services, and includes enabling infrastructure and a dedicated approval mechanism to streamline operations and logistics.  This is India’s first chip fabrication plant.

Earlier, Government had taken several significant steps to strengthen India’s semiconductor and electronics manufacturing ecosystem through progressive reforms in the Special Economic Zones (SEZ) law and targeted approvals of sector-specific SEZs. In line with the Government’s focus, these reforms are aimed at promoting high-value, capital-intensive investments, fostering innovation, and enhancing ease of doing business on developing a globally competitive semiconductor ecosystem.

Key amendments to the SEZ Rules, 2006 were carried out through the notification dated 03.06.2025 to address the unique requirements of semiconductor and electronics manufacturing, including reduction in minimum land requirement from 50 hectares to 10 hectares, flexibility in encumbrance norms, inclusion of free-of-cost supplies in Net Foreign Exchange calculations, and permitting domestic sales in the Domestic Tariff Area (DTA) on payment of applicable duties.

 Following through on these reforms, the Board of Approval for SEZs has accorded approvals to major proposals of setting up of SEZs for semiconductor and electronics. Notably, Micron Semiconductor Technology India Pvt Ltd is establishing an SEZ for semiconductor Assembly, Testing, Marking and Packaging in Sanand, Gujarat, with an estimated investment of ₹13,000 crore, while Aequs Group is setting up an electronic component manufacturing SEZ in Dharwad, Karnataka. These projects are expected to catalyse the development of domestic value chains, generate high-skilled employment, and reduce import dependence. List of SEZs approved after the said regulatory easing, is as below:

Sl. No.

Name of the entity

Date of notification

Land Area (in hectares)

Proposed Investment (in ₹ crore)

Proposed Employment (direct/ indirect)

Type of Operation

1.

M/s Micron Semiconductor Technology India Pvt. Ltd

23rd June, 2025 

37.64

13,000

20,786

Assembly, Testing, Marking and Packaging Unit

2.

M/s. Hubballi Durable Goods Cluster Private Limited

23rd June, 2025 

11.549

100

4,360

Electronics Components Manufacturing and services

3.

M/s CG Semi Pvt. Ltd.

23rd September, 2025 

11.541

2150

1,911

Outsourced Semiconductor Assembly and Testing for Semiconductor chips

4.

M/s Kaynes Semicon Pvt. Ltd.

26th September, 2025

18.44

681

2,020

Outsourced Semiconductor Assembly and Testing (OSAT) Unit

5.

M/s. Tata Semiconductor Manufacturing Private Limited

9th April, 2026 

66.166

91,000

21,000

AI enabled Semiconductor Fabrication facility

These SEZs are envisaged to contribute to the gradual build-up of a robust, competitive, resilient, and future-ready semiconductor ecosystem. These initiatives, together with industry participation and policy support, are facilitating and paving a way for the creation of integrated manufacturing clusters, strengthening domestic capabilities, and positioning India as an emerging hub for semiconductor and electronics production.