• Government of India has notified a SEZ by Tata Semiconductor Manufacturing Private Limited at Dholera to establish the country’s first semiconductor chip fabrication plant
  • The Government of India has notified a Special Economic Zone (SEZ) by Tata Semiconductor Manufacturing Private Limited at Dholera to establish the country’s first semiconductor chip fabrication plant.The SEZ will be developed over 66.166 hectareswith a proposed investment of ₹91,000 crore.This is India’s first chip fabrication plant.The SEZ is designed to support electronic hardware, software, and IT/ITES services with integrated infrastructure.It includes a dedicated approval and logistics mechanism to ensure ease of doing business.The approval was granted by the Board of Approval (BoA), the apex body for SEZ-related decisions.It is part of a broader push under initiatives like the India Semiconductor Mission 2.0, aimed at building a full-stack semiconductor ecosystem.

Policy & Regulatory Reforms: Amendments to Special Economic Zones Rules, 2006 (June 2025) tailored for semiconductor manufacturing.  Key reforms include:

  •       Reduction in minimum land requirement (50 → 10 hectares)
  •       Relaxation of encumbrance norms
  •       Inclusion of free-of-cost supplies in Net Foreign Exchange (NFE)
  •       Allowing Domestic Tariff Area (DTA) sales on payment of duties
  •   These reforms aim to promote high-value, capital-intensive investments and improve ease of doing business.
  • Other Approved Semiconductor & Electronics SEZs
  •    Micron Semiconductor Technology India Pvt Ltd is setting up a ₹13,000 crore ATMP unit in Sanand, Gujarat, to strengthen chip packaging capabilities.
  •    Hubballi Durable Goods Cluster Private Limited is establishing an electronics components manufacturing SEZ in Dharwad, Karnataka.
  •    CG Semi Pvt Ltd is developing a ₹2,150 crore OSAT facility to support semiconductor assembly and testing.
  •    Kaynes Semicon Pvt Ltd is setting up a ₹681 crore OSAT unit to enhance domestic semiconductor value chains.
  • Significance of the Plant
  •    Strengthening Semiconductor Supply Chains: With the global semiconductor market exceeding USD 600 billionand projected to cross USD 1 trillion by 2030, India’s entry into chip fabrication enhances supply chain resilience and reduces external vulnerabilities.
  •       Boost to Electronics Manufacturing: As India’s electronics production has already crossed USD 115 billion (2023–24), domestic chip manufacturing will support key sectors like smartphones, automobiles, and consumer electronics, reducing reliance on imports.
  •     Employment and Skill Development: The project will generate high-skilled jobs (~21,000)and promote advanced R&D, specialised training, and industry-academia collaboration in semiconductor technologies.
  •     Integration into Global Value Chains (GVCs): The fab, along with ATMP/OSAT units (like Micron Semiconductor Technology India Pvt Ltd), positions India as a reliable node in global semiconductor supply chains, complementing hubs in East Asia and the US.
  •     Support for Emerging Technologies: Domestic semiconductor capability is critical for AI, electric vehicles, telecom (5G/6G), defence systems, and data centres, making it strategically vital for future industries.
  •    Strategic & Technological Sovereignty: Indigenous chip manufacturing reduces import dependence, enhances national security, and ensures control over critical digital infrastructure.
  • Catalyst for Ecosystem Development: The plant will anchor integrat