India Notifies First Chip Fabrication Plant at Dholera SEZ

The central government on April 9, 2026, notified a Special Economic Zone (SEZ) for Tata Semiconductor Manufacturing Private Limited at Dholera, Gujarat — India's first chip fabrication plant — covering 66.166 hectares and projected to employ 21,000 persons in electronic hardware, software, and IT-enabled services.

The SEZ includes enabling infrastructure and a dedicated approval mechanism to streamline operations and logistics. With a proposed investment of ₹91,000 crore, it will operate as an AI-enabled semiconductor fabrication facility.

The notification follows amendments to the SEZ Rules, 2006, made on June 3, 2025, which reduced the minimum land requirement from 50 hectares to 10 hectares, introduced flexibility in encumbrance norms, included free-of-cost supplies in Net Foreign Exchange calculations, and permitted domestic sales in the Domestic Tariff Area on payment of applicable duties.

Since the regulatory changes, the Board of Approval for SEZs has cleared four other semiconductor and electronics SEZs. Micron Semiconductor Technology India Pvt. Ltd was notified on June 23, 2025, for an Assembly, Testing, Marking and Packaging unit at Sanand, Gujarat, across 37.64 hectares with a proposed investment of ₹13,000 crore and projected employment of 20,786.

On the same date, Hubballi Durable Goods Cluster Private Limited received approval for an electronics components manufacturing SEZ across 11.549 hectares in Karnataka, with a proposed investment of ₹100 crore and projected employment of 4,360. CG Semi Pvt. Ltd. was notified on September 23, 2025, for outsourced semiconductor assembly and testing across 11.541 hectares, with a proposed investment of ₹2,150 crore and projected employment of 1,911. Kaynes Semicon Pvt. Ltd. followed on September 26, 2025, for an OSAT unit across 18.44 hectares, with a proposed investment of ₹681 crore and projected employment of 2,020.

The government has stated that these SEZs are expected to develop domestic value chains, generate high-skilled employment, and reduce import dependence in the semiconductor sector.