New Delhi, April 16 (NationPress) The Central government has announced the establishment of a Special Economic Zone (SEZ) by Tata Semiconductor Manufacturing Private Limited specifically for electronic hardware and software, including IT/ITES, at Dholera in Gujarat, as stated by the Ministry of Commerce and Industry on Thursday.

Covering an area of 66.166 hectares and expected to create 21,000 jobs, this SEZ is aimed at bolstering the production of electronic hardware, software, and IT-enabled services. It features necessary infrastructure and a dedicated approval system to facilitate operations and logistics. According to the ministry's announcement, this marks India’s inaugural chip fabrication facility.

Previously, the government has implemented various transformative measures to enhance India’s semiconductor and electronics manufacturing landscape through reforms in the Special Economic Zones (SEZ) legislation and targeted approvals of sector-specific SEZs. These reforms are part of the government’s commitment to attracting high-value, capital-intensive investments, promoting innovation, and improving the ease of doing business, ultimately aiming to create a globally competitive semiconductor ecosystem.

Amendments to the SEZ Rules, established in 2006, were made effective through a notification dated June 3, 2025, to cater to the distinct needs of semiconductor and electronics manufacturing. Changes included a reduction in the minimum land requirement from 50 hectares to 10 hectares, increased flexibility in encumbrance norms, the inclusion of free supplies in Net Foreign Exchange calculations, and the allowance for domestic sales in the Domestic Tariff Area (DTA) upon payment of relevant duties.

Following these reforms, the Board of Approval for SEZs has granted approvals for significant proposals aimed at establishing SEZs in the semiconductor and electronics sectors.

In a noteworthy development, Micron Semiconductor Technology India Pvt Ltd is setting up an SEZ for semiconductor assembly, testing, marking, and packaging in Sanand, Gujarat, with an estimated investment of Rs 13,000 crore. Similarly, Aequs Group is establishing an electronic component manufacturing SEZ in Dharwad, Karnataka. Other approved proposals include CG Semi, Kaynes Semicon, and the Hubballi Durable Goods Cluster. These initiatives are anticipated to stimulate the development of domestic value chains, create high-skilled jobs, and lessen import reliance.

These SEZs are envisioned to gradually establish a robust, competitive, resilient, and future-ready semiconductor ecosystem. Together with industry involvement and policy backing, these initiatives are paving the way to form integrated manufacturing clusters, strengthening domestic capabilities, and positioning India as a rising hub for semiconductor and electronics production, the statement concluded.