The government has notified a special economic zone in Dholera, Gujarat, for Tata Semiconductor Manufacturing to develop electronic hardware and software activities including IT and ITeS. The company has proposed an investment of Rs 910 billion (bn) to establish what would be India's first chip fabrication unit. The approval marks a significant step in national efforts to expand domestic semiconductor manufacturing capacity.

The proposal was approved by the board of approval, the highest body for SEZ matters, chaired by the commerce secretary, and the Department of Commerce issued the notification on nine April, according to Additional Secretary Ajay Bhadoo. The SEZ will be established on an area of 66.16 hectares and is expected to generate 21,000 jobs. To promote the sector, Bhadoo said the government reduced the minimum contiguous land requirement from 50 hectares to 10 hectares last year.

So far, five new SEZs for the semiconductor and electronics sectors have been notified, including CG Semi with a proposed investment of Rs 21.5 bn, Kaynes Semicon at Rs 6.81 bn, Micron Semiconductor Technology India at Rs 130 bn and Hubballi Durable Goods Cluster at Rs 1 bn. The ministry has approved 10 projects with envisaged investments of about Rs 1.6 trillion (tn), covering two fabrication units and eight packaging units, spanning CMOS and silicon carbide fabs as well as advanced and memory packaging. Officials indicated these approvals cover both silicon and compound semiconductor supply chain elements.

The India Semiconductor Mission 2.0, announced in the Budget for 2026, aims to produce equipment and materials, develop full-stack intellectual property and strengthen supply chains under the Electronics Components Manufacturing Scheme launched in April 2025. The finance minister proposed increasing the scheme outlay to Rs 400 bn to capitalise on recent momentum. The notification of the Dholera SEZ is expected to complement these policy measures and attract further investment into the domestic semiconductor ecosystem.