India’s first chip fabrication plant gets SEZ status at Dholera

New Delhi — The Centre has officially notified a Special Economic Zone (SEZ) for setting up India’s first semiconductor fabrication plant at Dholera in Gujarat, marking a major step in building the country’s chip manufacturing capabilities.

The SEZ will be developed by Tata Semiconductor Manufacturing Private Limited and will focus exclusively on electronic hardware, software, and IT/ITES services. Spread across 66.166 hectares, the project is expected to generate employment for around 21,000 people. It will also feature dedicated infrastructure and a streamlined approval mechanism to improve operational efficiency and logistics.

The move comes as part of the government’s broader push to strengthen India’s semiconductor and electronics ecosystem. Recent reforms to the SEZ Rules, 2006 — notified on June 3, 2025 — have been tailored to suit capital-intensive sectors like semiconductor manufacturing. These include reducing the minimum land requirement from 50 hectares to 10 hectares, easing land encumbrance norms, allowing domestic sales in the Domestic Tariff Area (DTA) with applicable duties, and counting free-of-cost supplies in Net Foreign Exchange calculations.

Alongside this, the government has approved several other semiconductor and electronics-focused SEZ projects. Micron Semiconductor Technology India Pvt Ltd is setting up a semiconductor assembly and testing facility in Sanand, Gujarat, with an investment of Rs 13,000 crore. Meanwhile, Aequs Group is establishing an electronics component manufacturing SEZ in Dharwad, Karnataka.

Additional approved proposals include ventures by CG Semi, Kaynes Semicon, and the Hubballi Durable Goods Cluster, all aimed at strengthening domestic supply chains and reducing India’s reliance on imports.

These initiatives are expected to accelerate the development of a robust and self-reliant semiconductor ecosystem, boost high-skilled employment, and position India as a competitive global hub for electronics and chip manufacturing.

With inputs from IANS