Centre Notifies India’s First Chip Fabrication Plant at Dholera SEZ
The Tata semiconductor facility at Dholera Special Economic Zone (SEZ) in Gujarat involves an investment of approximately ₹91,000 crore, making it one of the largest industrial investments in India’s electronics sector.
Tata semiconductor unit to anchor ₹91,000 crore fab, generate 21,000 jobs in Gujarat
New Delhi: Ministry of Commerce and Industry has notified India’s first semiconductor chip fabrication plant at Dholera Special Economic Zone (SEZ) in Gujarat, to be set up by Tata Semiconductor Manufacturing Pvt Ltd, marking a major milestone in the country’s push to build a domestic semiconductor ecosystem.
The SEZ will span 66.166 hectares and is expected to generate employment for around 21,000 people, while supporting electronic hardware, software and IT-enabled services through integrated infrastructure and streamlined approval mechanisms.
This will be India’s first chip fabrication facility, positioning the country in the high-value, capital-intensive semiconductor manufacturing segment.
The notification follows a series of reforms in the SEZ framework aimed at strengthening India’s semiconductor and electronics manufacturing ecosystem. Amendments to SEZ rules have reduced minimum land requirements from 50 hectares to 10 hectares, eased encumbrance norms, allowed inclusion of free-of-cost supplies in net foreign exchange calculations, and permitted domestic sales in the domestic tariff area on payment of duties.
The government has also approved multiple semiconductor-linked SEZ proposals. According to the data in the release, major projects include a ₹13,000 crore semiconductor assembly and testing unit by Micron in Gujarat, and electronics manufacturing SEZs in Karnataka and other regions, reflecting a broader push to build an integrated value chain.
The Tata semiconductor facility itself involves an investment of approximately ₹91,000 crore, making it one of the largest industrial investments in India’s electronics sector.
The move is expected to catalyse domestic value chains, reduce import dependence, generate high-skilled employment and position India as an emerging hub for semiconductor and electronics manufacturing.
