Tata Group Subsidiary To Set Up India’s First Chip Fabrication SEZ In Gujarat

Gandhinagar, Apr 17 (KNN) The government has notified a Special Economic Zone (SEZ) to be set up by Tata Semiconductor Manufacturing Private Limited (TSMPL), a subsidiary of the Tata Group, at Dholera in Gujarat, marking the country’s first chip fabrication facility.

Spread over 66.166 hectares, the SEZ will focus on electronic hardware, software, and IT/ITES services, and is expected to generate employment for around 21,000 people. 

The project includes enabling infrastructure and a streamlined approval mechanism to support efficient operations and logistics.

Policy Reforms to Support Semiconductor Manufacturing

The development follows key reforms, including amendments to the Special Economic Zones Rules, 2006, notified in June 2025, which reduced the minimum land requirement from 50 hectares to 10 hectares and introduced greater operational flexibility.

These include relaxed encumbrance rules, inclusion of free-of-cost supplies in Net Foreign Exchange calculations, and permission for domestic sales in the Domestic Tariff Area (DTA) upon payment of applicable duties.

These changes are aimed at attracting high-value investments, fostering innovation, and improving ease of doing business in capital-intensive sectors like semiconductors.

Other Key Semiconductor SEZ Projects

Following these reforms, the Board of Approval for SEZs has cleared several major proposals.

Micron Semiconductor Technology India Pvt Ltd is setting up an SEZ for semiconductor Assembly, Testing, Marking and Packaging (ATMP) in Sanand, Gujarat, with an investment of around Rs 13,000 crore.

Additionally, Aequs Group is establishing an electronic components manufacturing SEZ in Dharwad, Karnataka.

(KNN Bureau)