The Government of India has officially notified the country’s first semiconductor chip fabrication plant at Dholera Special Economic Zone in Gujarat. The project will be developed by Tata Semiconductor Manufacturing Private Limited.
This SEZ is dedicated to electronic hardware, software, and IT-enabled services and marks a major step in building India’s semiconductor ecosystem.
Project Overview
- Location: Dholera, Gujarat
- Land area: 66.166 hectares
- Investment: Rs 91,000 crore
- Employment potential: 21,000 jobs
- Facility type: AI-enabled semiconductor fabrication plant
Government Reforms Supporting Semiconductor Growth
The government introduced key changes to SEZ Rules in June 2025 to support semiconductor manufacturing.
- Minimum land requirement reduced from 50 hectares to 10 hectares
- Flexibility in land ownership and encumbrance rules
- Free-of-cost supplies included in Net Foreign Exchange calculations
- Domestic sales allowed in Domestic Tariff Area with applicable duties
Approved Semiconductor and Electronics SEZ Projects
Following these reforms, several major projects have been approved across India:
Micron Semiconductor Technology India Pvt Ltd
- Date: 23 June 2025
- Land: 37.64 hectares
- Investment: Rs 13,000 crore
- Employment: 20,786
- Focus: Assembly, Testing, Marking and Packaging
Hubballi Durable Goods Cluster Private Limited
- Date: 23 June 2025
- Land: 11.549 hectares
- Investment: Rs 100 crore
- Employment: 4,360
- Focus: Electronics components manufacturing and services
CG Semi Pvt Ltd
- Date: 23 September 2025
- Land: 11.541 hectares
- Investment: Rs 2,150 crore
- Employment: 1,911
- Focus: Semiconductor assembly and testing
Kaynes Semicon Pvt Ltd
- Date: 26 September 2025
- Land: 18.44 hectares
- Investment: Rs 681 crore
- Employment: 2,020
- Focus: OSAT unit
Tata Semiconductor Manufacturing Private Limited
- Date: 9 April 2026
- Land: 66.166 hectares
- Investment: Rs 91,000 crore
- Employment: 21,000
- Focus: Chip fabrication facility
Impact on India
- Builds domestic semiconductor supply chain
- Reduces import dependence
- Creates high-skilled jobs
- Strengthens electronics manufacturing ecosystem
- Positions India as a global semiconductor hub
Conclusion
The Dholera chip fabrication plant is a major milestone for India’s technology sector. With strong policy support and rising investments, India is moving towards becoming a global leader in semiconductor manufacturing.
