India Approves Tata Semiconductor's First Chip Fabrication Plant

The Ministry of Commerce and Industry formally notified the establishment of India's first semiconductor fabrication plant in Dholera, Gujarat. Developed by Tata Semiconductor Manufacturing Private Limited, the project involves a proposed investment of ₹91,000 crore and will occupy approximately 66 hectares within a special economic zone (SEZ). The facility aims to support electronic hardware, software, and IT-enabled services, with the potential to create 21,000 jobs.

This approval follows government reforms to the SEZ Rules, 2006, which reduced the minimum contiguous land requirement for semiconductor and electronics sectors from 50 hectares to 10 hectares. These amendments were designed to attract capital-intensive investments and ease encumbrance norms.

Alongside the Tata project, the government approved several other electronics initiatives to strengthen domestic value chains. These include a ₹13,000 crore investment by Micron Semiconductor Technology India Pvt Ltd for an assembly, testing, marking, and packaging SEZ in Sanand, Gujarat, as well as projects by the Aequs Group in Dharwad, Karnataka, Kaynes Semicon, and CG Semi.