Center approves SEZ for first chip plant in Dholera

The Central Government has issued a notification to set up a Special Economic Zone (SEZ) for electronic hardware and software (including IT/ITES) by Tata Semiconductor Manufacturing Private Limited at Dholera, Gujarat. The Ministry of Commerce and Industry gave this information on Thursday.

This SEZ will be spread over an area of ​​about 66.166 hectares and is likely to provide employment to about 21,000 people. The project is designed to support electronic hardware, software and IT-based services, which will also include modern infrastructure and special permission system to ease operations and logistics. According to the ministry, this will be India’s first chip manufacturing (fabrication) plant.

The government has already made several major reforms in the SEZ law to promote semiconductor and electronics manufacturing. These reforms are aimed at attracting higher investment, promoting innovation and enhancing ease of doing business, so that India becomes a globally competitive semiconductor hub.

Important changes were made in the SEZ Rules, 2006 through a notification issued on June 3, 2025. Under this, the minimum land requirement was reduced from 50 hectares to 10 hectares. Apart from this, steps like flexibility in land related rules, inclusion of free supplies in net foreign exchange, and allowing sales in the domestic market (DTA) were also taken.

After these reforms, the SEZ Board has approved many big projects. These include Micron Semiconductor Technology India Private Limited’s semiconductor assembly, testing and packaging plant in Sanand, Gujarat, in which there will be an investment of about Rs 13,000 crore. At the same time, Equus Group is setting up an electronic component manufacturing SEZ in Dharwad, Karnataka.

Apart from this, proposals like CG Semi, Kayans Semicon and Hubli Durable Goods Cluster have also been approved, which will help in strengthening the supply chain in the country, increasing employment and reducing dependence on imports.

All these Special Economic Zones (SEZs) are envisioned to create a strong, competitive and future-ready semiconductor ecosystem in India. The statement said that these steps, along with industry participation and policy support, will play an important role in making India a major hub of global electronics and semiconductor production.

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