India has given the green light for a special economic zone (SEZ) specifically for its inaugural semiconductor fabrication facility, representing a significant advancement in its efforts to create a domestic chip manufacturing ecosystem.
The SEZ has been designated for Tata Semiconductor Manufacturing Private Ltd., which aims to invest approximately ₹91,000 crore in the endeavor, as stated by the commerce ministry. The site, which spans 66.16 hectares, is anticipated to generate around 21,000 job opportunities.
This initiative follows the reforms implemented in June 2025 that reduced the minimum contiguous land requirement for SEZs in the semiconductor and electronics components sector from 50 hectares to 10 hectares, with the goal of accelerating investments in chip production.
In addition to Tata’s venture, four other SEZs for semiconductor and electronics components have been approved, including plans from Micron Semiconductor Technology India Ltd., Kaynes Semicon Ltd., and CG Semi Ltd., with total investments reaching into the thousands of crores and potential for significant job creation.
Micron’s branch in India alone has proposed an investment of ₹13,000 crore, expecting to create over 20,000 jobs, while smaller initiatives like Kaynes and CG Semi are concentrating on assembly, testing, and packaging sectors.
CG Semi and Kaynes have put forth proposals of ₹2150 crore and ₹681 crore, respectively.
These approvals arrive amid rising demand and intensifying competition for semiconductors as AI technology evolves rapidly.
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