The government has notified a Special Economic Zone to be set up by Tata Semiconductor Manufacturing Private Limited at Dholera, Gujarat, marking a significant step in the country’s push to build a domestic chip manufacturing ecosystem.
According to a statement issued by the Ministry of Commerce and Industry on Thursday, 16 April, the Special Economic Zone (SEZ) will be set up by Tata Semiconductor Manufacturing Private Limited for electronic hardware, software and IT-enabled services.
The SEZ will be set up by Tata Semiconductor Manufacturing Private Limited for electronic hardware, software and IT-enabled services, the ministry said, adding that this will be India’s first chip fabrication plant.
The SEZ will span 66.166 hectares and is expected to generate employment for 21,000 persons.
It will include enabling infrastructure and a dedicated approval mechanism aimed at streamlining operations and logistics.
The notification comes as part of a broader policy push to strengthen India’s semiconductor and electronics manufacturing capabilities through reforms in the SEZ framework.
The government had earlier amended the SEZ Rules, 2006 through a notification dated 3 June 2025 to address the specific requirements of semiconductor and electronics manufacturing.
These changes included reducing the minimum land requirement for SEZs from 50 hectares to 10 hectares, easing encumbrance norms, allowing inclusion of free-of-cost supplies in Net Foreign Exchange calculations, and permitting domestic sales in the Domestic Tariff Area on payment of applicable duties.
Following these reforms, the Board of Approval for SEZs has cleared multiple proposals in the semiconductor and electronics segment.
Among them, Micron Semiconductor Technology India Pvt Ltd is setting up a semiconductor Assembly, Testing, Marking and Packaging facility in Sanand, Gujarat, with an investment of ₹13,000 crore and expected employment of 20,786.
Similarly, Aequs Group is establishing an electronics component manufacturing SEZ in Dharwad, Karnataka, while CG Semi Pvt Ltd and Kaynes Semicon Pvt Ltd are developing outsourced semiconductor assembly and testing units.
The Tata Semiconductor facility at Dholera, with a proposed investment of ₹91,000 crore, is being developed as an AI-enabled semiconductor fabrication unit.
The ministry stated that these SEZs are expected to support the development of domestic value chains, generate high-skilled employment, and reduce import dependence.
It added that the initiatives are aimed at building a competitive and resilient semiconductor ecosystem while positioning India as an emerging hub for electronics and chip manufacturing.
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