The government has notified Tata Semiconductor Manufacturing Private Limited's AI-enabled chip fabrication plant at Dholera, Gujarat — India's first — spread over 66 hectares and set to employ 21,000 persons.
NEW DELHI – The Government has notified a Special Economic Zone (SEZ) to be set up by Tata Semiconductor Manufacturing Private Limited exclusively for electronic hardware, software, and IT/ITES at Dholera, Gujarat. The SEZ will be spread over 66.166 hectares of land and is poised to provide employment to 21,000 persons, and marks India's first chip fabrication plant.
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.
SEZ Reforms Paving the Way
The Government had earlier taken several significant steps to strengthen India's semiconductor and electronics manufacturing ecosystem through progressive reforms in the SEZ law and targeted approvals of sector-specific SEZs, aimed at promoting high-value, capital-intensive investments, fostering innovation, and enhancing ease of doing business.
Key amendments to the SEZ Rules, 2006 were carried out through a notification dated June 3, 2025, to address the unique requirements of semiconductor and electronics manufacturing. These included a reduction in the 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 on payment of applicable duties.
Other Major SEZ Approvals
Following these reforms, the Board of Approval for SEZs accorded approvals to major proposals for semiconductor and electronics SEZs. 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.
These SEZs are envisaged to contribute to the gradual build-up of a robust, competitive, resilient, and future-ready semiconductor ecosystem, facilitating the creation of integrated manufacturing clusters, strengthening domestic capabilities, and positioning India as an emerging hub for semiconductor and electronics production.
