Govt notifies India’s 1st chip fabrication plant at SEZ Dholera

New Delhi: The Government has notified a Special Economic Zone (SEZ) to be set up by Tata Semiconductor Manufacturing Private Limited at Dholera, Gujarat, marking the establishment of India’s first chip fabrication plant.

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Spread over 66.166 hectares, the SEZ will focus on electronic hardware, software and IT/ITeS, and is expected to generate employment for around 21,000 people. The facility will feature enabling infrastructure and a dedicated approval mechanism aimed at streamlining operations and logistics.

The development comes as part of the government’s broader push to strengthen India’s semiconductor and electronics manufacturing ecosystem through reforms in the SEZ framework. Amendments to the SEZ Rules, 2006, notified in June 2025, reduced the minimum land requirement for such projects, introduced flexibility in encumbrance norms, allowed inclusion of free-of-cost supplies in net foreign exchange calculations, and permitted domestic sales in the domestic tariff area on payment of applicable duties.

Following these reforms, the Board of Approval for SEZs has cleared several semiconductor and electronics projects. These include Micron Semiconductor Technology India’s assembly, testing, marking and packaging unit in Sanand with an investment of Rs 13,000 crore, as well as projects by CG Semi, Kaynes Semicon, and Hubballi Durable Goods Cluster.

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The Tata Semiconductor project, with a proposed investment of Rs 91,000 crore, is an AI-enabled semiconductor fabrication facility and is expected to play a key role in developing domestic value chains, generating high-skilled employment, and reducing import dependence.

The Government said these initiatives are aimed at building a robust and globally competitive semiconductor ecosystem, positioning India as an emerging hub for electronics and chip manufacturing.

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