The government has formally notified a Special Economic Zone for Tata Semiconductor Manufacturing Private Limited at Dholera in Gujarat, marking a significant milestone for India's semiconductor ambitions.
The facility, spanning over 66. 166 hectares of land, is expected to create nearly 21,000 jobs and represents 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.
The notification comes after the government introduced key amendments to the SEZ Rules, 2006 in June 2025 to address unique requirements of semiconductor manufacturing.
These reforms included 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 permitting domestic sales in the Domestic Tariff Area on payment of applicable duties.
The Dholera facility is part of Tata's broader semiconductor strategy, which involves a total investment of up to Rs 91,000 crores in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation.
The fab construction began in 2024 with total investment of up to Rs 91,000 crores and will generate over 20,000 direct and indirect skilled jobs in the region.
The project is expected to produce 50,000 wafers per month once operational.
Following these reforms, the Board of Approval for SEZs has also accorded approvals to other major semiconductor proposals.
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 Rs 13,000 crore, while Aequs Group is setting up an electronic component manufacturing SEZ in Dharwad, Karnataka.
These initiatives, together with industry participation and policy support, are facilitating and paving a way for the creation of integrated manufacturing clusters, strengthening domestic capabilities, and positioning India as an emerging hub for semiconductor and electronics production.
The developments align with India's broader semiconductor mission, which has seen 10 projects worth Rs 1.60 lakh crore approved across six states under the government's semiconductor manufacturing programme.
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