Govt notifies India’s first chip fabrication plant by Tata Semiconductor in Dholera SEZ.

The government has formally notified the establishment of a Special Economic Zone (SEZ) by Tata Semiconductor Manufacturing Private Limited in Dholera, Gujarat, dedicated to electronic hardware, software, and IT/ITES.

In an official statement issued on Thursday, the Union Ministry of Commerce & Industry said the SEZ will span 66.166 hectares and is expected to generate nearly 21,000 jobs. The facility is being positioned as India’s first chip fabrication plant, marking a significant step in the country’s semiconductor manufacturing ambitions.

According to the ministry, the SEZ will support a wide range of activities, including electronic hardware production, software development, and IT-enabled services. It will also feature enabling infrastructure and a dedicated approval mechanism aimed at streamlining operations and logistics.

The government has also introduced key amendments to the SEZ Rules, 2006, through a notification dated June 3, 2025, to address the specific needs of semiconductor and electronics manufacturing. These include reducing the minimum land requirement for such SEZs from 50 hectares to 10 hectares, easing encumbrance norms, allowing the inclusion of free-of-cost supplies in Net Foreign Exchange calculations, and permitting domestic sales in the Domestic Tariff Area (DTA) upon payment of applicable duties.