The government has notified a special economic zone to be set up by Tata Semiconductor Manufacturing for electronic hardware and software, including IT/ITeS, at Dholera in Gujarat.
The company has proposed an investment of Rs 91,000 crore to set up India’s first chip fabrication unit.
The proposal was approved by the board of approval, the highest body for SEZ-related issues. It is chaired by the commerce secretary.
“The Department of Commerce on April 9 has notified a special economic zone to be set up by Tata Semiconductor Manufacturing exclusively for electronic hardware and software, including IT/ITeS at Dholera, Gujarat,” Additional Secretary in the Commerce Ministry Ajay Bhadoo said.
The SEZ will be set up on an area of 66.16 hectares. It is expected to generate 21,000 jobs.
Bhadoo said that to promote the sector, the government last year reduced the minimum contiguous land requirement from 50 hectares to 10 hectares for the semiconductor and electronics component sectors.
So far, five new SEZs for the sectors have been notified. It includes CG Semi, with a proposed investment of Rs 2,150 crore; Kaynes Semicon, with a proposed investment of Rs 681 crore; Micron Semiconductor Technology India, with a proposed investment of Rs 13,000 crore; and Hubballi Durable Goods Cluster, with a proposed investment of Rs 100 crore.
Projects approved so far
As per a Ministry of Electronics and IT notification in February, the government has approved 10 projects with envisaged investments of about Rs 1.6 lakh crore, which includes 2 fabs and 8 packaging units. These units inter alia include CMOS (Silicon) fab, Silicon Carbide fab, advanced packaging, and memory packaging.
India Semiconductor Mission 2.0
In Budget 2026, the Finance Minister announced the launch of India Semiconductor Mission 2.0 to produce equipment and materials, design full-stack Indian IP, and fortify supply chains.
The India Semiconductor Mission 2.0 is built upon the Electronics Components Manufacturing Scheme, launched in April 2025. In Budget 2026, the Finance Minister proposed increasing the outlay to Rs. 40,000 Crores to capitalize on the momentum.