Commerce Ministry: India’s maiden chip fabrication Plant in Gujarat to employ 21k people

India has notified an SEZ to be set up by Tata Semiconductor Manufacturing Private Limited exclusively for Electronic Hardware and Software, including IT/ITES in Gujarat’s Dholera. The Commerce Ministry said that the SEZ spread over 66.166 hectares is “poised to provide employment to 21,000 people,” and will be 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.Amendments to the SEZ Rules, 2006 were carried out through a notification dated 3rd June 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 permission of domestic sales in the Domestic Tariff Area (DTA) on payment of applicable duties. Following through on these reforms, the Board of Approval for SEZs approved proposals for setting up of SEZs for semiconductor and electronics. 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. The Commerce Ministry has said that 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:(Edited by : Srabastee Biswas)

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