Tata Semiconductor Manufacturing Private Ltd plans to invest around Rs 91,000 crore in the project.

The newly notified SEZ has been granted to Tata Semiconductor Manufacturing Private Ltd in Gujarat, which plans to invest around Rs 91,000 crore in the project. The government has cleared a special economic zone (SEZ) for the country’s first semiconductor fabrication plant, to boost efforts to develop a domestic chip manufacturing base and reduce import dependence. The newly notified SEZ has been granted to Tata Semiconductor Manufacturing Private Ltd, which plans to invest around Rs 91,000 crore in the project, according to the commerce ministry. Spread over 66.16 hectares, the facility at Dholera in Gujarat is expected to create nearly 21,000 jobs. “The department of commerce on April 9 has notified a special economic zone to be set up by Tata Semiconductor Manufacturing Pvt Ltd exclusively for electronic hardware and software including IT/ITeS at Dholera, Gujarat," Additional Secretary in the Commerce Ministry Ajay Bhadoo told reporters here, according to news agency PTI. The approval comes after the government amended SEZ rules in June 2025 to encourage semiconductor investments. Under the revised norms, the minimum contiguous land requirement for SEZs in semiconductor and electronics component manufacturing was reduced from 50 hectares to 10 hectares, making it easier for companies to set up projects. Apart from Tata’s fab project, four additional semiconductor and electronics component SEZ proposals have also received approvals. These include plans by Micron Semiconductor Technology India Ltd, Kaynes Semicon Ltd, and CG Semi Ltd. Micron’s India arm has proposed an investment of Rs 13,000 crore and is expected to generate more than 20,000 jobs. Meanwhile, Kaynes and CG Semi are focusing on assembly, testing and packaging operations, with proposed investments of Rs 681 crore and Rs 2,150 crore, respectively. The latest approvals come as countries race to secure chip supply chains amid surging semiconductor demand, driven by rapid advances in artificial intelligence, data centres, automobiles and consumer electronics. The government has been pushing to position India as a credible semiconductor manufacturing hub through incentives, infrastructure support and regulatory easing, as global companies look to diversify production beyond traditional bases.

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