The government has notified a special economic zone to be established by M/s Tata Semiconductor Manufacturing Private Limited at Dholera in Gujarat exclusively for electronic hardware and software including IT and IT-enabled services. The zone will cover 66.166 hectares and is poised to provide employment to 21,000 persons, marking India's first chip fabrication plant. The facility will include enabling infrastructure to streamline operations and logistics.\n\nEarlier reforms and targeted approvals in the Special Economic Zones law were undertaken to strengthen the semiconductor and electronics manufacturing ecosystem. The reforms aim to promote high-value, capital-intensive investments, foster innovation and enhance ease of doing business to develop a globally competitive semiconductor ecosystem. The government carried out key amendments through a notification dated 03 June 2025 to address requirements of semiconductor and electronics manufacturing.\n\nAmendments reduced the minimum land requirement from 50 hectares to 10 hectares, introduced flexibility in encumbrance norms, included free-of-cost supplies in net foreign exchange calculations and permitted domestic sales in the Domestic Tariff Area on payment of applicable duties. These changes were designed to address the unique needs of semiconductor investors.\n\nFollowing the regulatory easing, the Board of Approval approved a series of sector-specific SEZs. Micron Semiconductor Technology India will establish an SEZ in Sanand on 37.64 hectares with investment of Rs 130 billion (bn) and 20,786 jobs; Hubballi Durable Goods Cluster will occupy 11.549 hectares with investment of Rs one bn and 4,360 jobs; CG Semi will develop an 11.541 hectare SEZ with investment of Rs 21.5 bn and 1,911 jobs; and Kaynes Semicon has approval for an 18.44 hectare unit with investment of Rs six point eight one bn and 2,020 jobs. The Tata semiconductor SEZ at Dholera carries a proposed investment of Rs 910 bn and 21,000 jobs.\n\nOfficials indicated that these SEZs are expected to catalyse domestic value chains, generate high-skilled employment and reduce import dependence. Combined with industry participation and policy support, the initiatives are facilitating the creation of integrated manufacturing clusters and positioning India as an emerging hub for semiconductor and electronics production.