The Government of India has approved a Special Economic Zone (SEZ) for the country’s first semiconductor fabrication plant, marking a major step towards building a domestic chip manufacturing ecosystem. The SEZ has been granted to Tata Semiconductor Manufacturing Private Ltd, which plans to invest around Rs 91,000 crore in the project at Dholera, Gujarat. This move aims to reduce reliance on imported semiconductors and strengthen India’s role in the global electronics supply chain.

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Dholera Semiconductor SEZ Project Scale and Jobs

The semiconductor fabrication facility under the Dholera Semiconductor SEZ will cover about 66.16 hectares. It is expected to create nearly 21,000 jobs, making it one of the largest investments in India’s electronics sector. The SEZ has been notified by the Department of Commerce, showing strong government support for high-tech industries.

Policy Support Behind Dholera Semiconductor SEZ

The approval follows key policy reforms introduced in June 2025. The government reduced the minimum land requirement for semiconductor SEZs from 50 hectares to 10 hectares. This change has made it easier for companies to set up manufacturing units. These reforms are part of India’s wider plan to attract both domestic and global semiconductor players.

Growing Semiconductor Ecosystem in India

Along with the Dholera Semiconductor SEZ, several other projects have been approved. Micron Semiconductor Technology India Ltd plans to invest Rs 13,000 crore and create over 20,000 jobs. Kaynes Semicon Ltd and CG Semi Ltd are focusing on assembly, testing, and packaging with investments of Rs 681 crore and Rs 2,150 crore respectively. These developments show the rise of a complete semiconductor value chain in India.

Strategic Role of Dholera Semiconductor SEZ

Semiconductors are key components used in smartphones, computers, automobiles, and many modern technologies. With growing global demand driven by artificial intelligence and data centres, countries are focusing on secure supply chains. The Dholera Semiconductor SEZ is expected to help India become a reliable manufacturing hub and support technological self-reliance.