In a major effort to enhance the semiconductor industry in India, the government has given approval to a Special Economic Zone (SEZ) to Tata Semiconductor Manufacturing in Dholera, Gujarat. The project, with an investment of Rs. 91,000 crore, is a notable step toward the local chip manufacturing ability.
The proposed semiconductor unit will be built across 66.16 hectares and is likely to be the first large-scale chip fabrication unit in India. The project is expected to generate 21,000 jobs. This will boost local employment and growth.
“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 approval is in line with new policy measures to accelerate investments in semiconductors. It is worth noting that the government lowered the semiconductor SEZs minimum land requirement to 10 hectares down from 50 hectares, thereby eased the process for companies to set up facilities.
The move has led to several SEZ approvals in the sector. It includes CG Semi (Rs. 2,150 crore), Kaynes Semicon (Rs. 681 crore), Micron Semiconductor Technology India (Rs. 13,000 crore) and the Hubballi Durable Goods Cluster (Rs. 100 crore) projects.
Dholera SEZ belongs to the broader semiconductor push by the government. According to the Ministry of Electronics and IT notification in February, the government has approved 10 projects with an investment of around Rs 1.6 lakh crore, which includes 2 fabs and 8 packaging units. These units include CMOS (Silicon) fab, Silicon Carbide fab, advanced packaging, and memory packaging.
Also Read: Tata Semiconductor Secures $735 Million Funding for Dholera Fab Project
To build this strategy further, in Budget 2026, the government declared India Semiconductor Mission 2.0. The plan is to create an entire semiconductor supply chain, which includes creating equipment, materials, and local intellectual property.
The mission expands on the Electronics Components Manufacturing Scheme that was introduced in April 2025, and the budgetary outlay was raised to Rs. 40,000 crore to help grow the industry and supply chain resiliency