India has taken a decisive step towards building a domestic semiconductor
manufacturing ecosystem with the approval of a special economic zone (SEZ) for
TATA Semiconductor Manufacturing Private Ltd.
The commerce ministry confirmed that TATA plans to invest approximately
₹91,000 crore in the project, which will be spread across 66.16 hectares and
is expected to generate around 21,000 jobs.
This development follows reforms introduced 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.
The policy change was designed to accelerate investments in chip
manufacturing, a sector critical to India’s technological ambitions.
Alongside TATA’s project, four other semiconductor and electronics component
SEZs have been cleared. These include proposals from Micron Semiconductor
Technology India Ltd., Kaynes Semicon Ltd., and CG Semi Ltd., with combined
investments amounting to thousands of crores and significant job creation
potential. Micron’s India unit alone has proposed an investment of ₹13,000
crore, with expected employment exceeding 20,000.
Smaller projects such as those by Kaynes and CG Semi are focused on assembly,
testing, and packaging segments, which are vital parts of the semiconductor
supply chain. CG Semi has proposed an investment of ₹2,150 crore, while Kaynes
has put forward ₹681 crore. These approvals highlight the government’s intent
to build a comprehensive semiconductor ecosystem spanning fabrication,
packaging, and testing.
The timing of these approvals is significant, as global demand for
semiconductors continues to rise amid rapid advances in artificial
intelligence and increasing competition for chip-making capacity. India’s push
to establish its own fabrication facilities and related infrastructure
reflects both economic and strategic priorities, aiming to reduce reliance on
imports and position itself as a competitive player in the global
semiconductor industry.
List of SEZs approved after the said regulatory easing, is as below:
| Name of The Entity | Date of Notification | Land Area (Hectares) | Investment (₹ Crores) | Employment | Type of Operation |
|---|---|---|---|---|---|
| Micron Semiconductor Technology India Pvt. Ltd | 23-6-2025 | 37.64 | 13,000 | 20,786 | Assembly, Testing, Marking and Packaging Unit |
| Hubballi Durable Goods Cluster Private Limited | 23-6-2025 | 11.549 | 100 | 4,360 | Electronics Components Manufacturing and services |
| CG Semi Pvt. Ltd. | 23-9-2025 | 11.541 | 2150 | 1,911 | Outsourced Semiconductor Assembly and Testing for Semiconductor chips |
| Kaynes Semicon Pvt. Ltd. | 26-9-2025 | 18.44 | 681 | 2,020 | Outsourced Semiconductor Assembly and Testing (OSAT) Unit |
| TATA Semiconductor Manufacturing Private Limited | 9-4-2026 | 66.166 | 91,000 | 21,000 | AI enabled Semiconductor Fabrication facility |
PIB
