New Delhi: India has notified its first chip fabrication plant at Dholera in Gujarat. The facility will be developed by Tata Semiconductor Manufacturing Private Limited in a Special Economic Zone (SEZ).
The project will span over 66.166 hectares. It is expected to generate employment for around 21,000 people. Moreover, the SEZ will support electronic hardware, software, and IT-enabled services.
Chip fabrication plant to boost semiconductor ecosystem
The chip fabrication plant marks a major step in strengthening India’s semiconductor ecosystem. It will also include enabling infrastructure and a streamlined approval mechanism. As a result, operations and logistics are expected to improve.
Earlier, the government introduced reforms in the SEZ Rules, 2006. These changes were notified in June 2025. They reduced the minimum land requirement from 50 hectares to 10 hectares. Additionally, they allowed more flexibility in operational norms.
Furthermore, the reforms permit domestic sales in the Domestic Tariff Area with applicable duties. They also include free-of-cost supplies in Net Foreign Exchange calculations. Therefore, these steps aim to attract high-value investments.
Several semiconductor projects have already been approved under the revised framework. For instance, Micron Semiconductor Technology India Pvt Ltd is setting up a facility in Sanand, Gujarat. This project focuses on assembly, testing, marking, and packaging.
Similarly, the Aequs Group is establishing an electronics manufacturing SEZ in Dharwad, Karnataka. These projects are expected to strengthen domestic value chains.
In addition, they will create high-skilled jobs and reduce import dependence. Consequently, India is gradually building a resilient semiconductor ecosystem.
Overall, these initiatives aim to position India as a global hub for electronics and semiconductor production.
