Government Notifies India’s First Chip Fabrication Plant at SEZ Dholera

The Government of India has notified a new Special Economic Zone (SEZ) to be set up by Tata Semiconductor Manufacturing Private Limited at Dholera, marking a major milestone in India’s semiconductor journey. 

Key Features of the SEZ

The SEZ will span 66.166 hectares and focus on electronic hardware, software, and IT/ITES, with an estimated employment generation of 21,000 jobs. 

India’s First Chip Fabrication Plant

This project represents India’s first semiconductor fabrication (fab) facility, a crucial step toward reducing import dependence and building domestic chip manufacturing capacity. 

Policy Reforms Supporting the Initiative

The government has introduced key amendments to the Special Economic Zones Rules 2006 (notified on June 3, 2025) to support semiconductor manufacturing:

• Reduction in minimum land requirement from 50 to 10 hectares
• Relaxation in encumbrance norms
• Inclusion of free-of-cost supplies in Net Foreign Exchange calculations
• Permission for domestic sales in Domestic Tariff Area (DTA) with applicable duties

Other Major SEZ Approvals

• Micron Semiconductor Technology India Pvt Ltd is establishing a semiconductor ATMP (Assembly, Testing, Marking, Packaging) SEZ in Sanand with an investment of ₹13,000 crore.
• Aequs Group is setting up an electronics component manufacturing SEZ in Dharwad.

Significance: These developments aim to:

• Promote high-value and capital-intensive investments
• Strengthen India’s semiconductor ecosystem
• Enhance innovation and ease of doing business
• Position India as a globally competitive electronics manufacturing hub

Source: PIB