India has approved a special economic zone (SEZ) for its first semiconductor fabrication facility, marking a key step in its push to build a domestic chip manufacturing ecosystem.
The SEZ has been notified for Tata Semiconductor Manufacturing Private Ltd., which plans to invest about Rs 91,000 crore in the project, according to the commerce ministry. The facility, spread across 66.16 hectares, is expected to generate around 21,000 jobs.
The move follows reforms notified in June 2025 that lowered the minimum contiguous land requirement for SEZs in the semiconductor and electronics components sector from 50 hectares to 10 hectares, aimed at accelerating investments in chip manufacturing.
Alongside Tata’s project, four other semiconductor and electronics component SEZs have been cleared, including proposals from Micron Semiconductor Technology India Ltd., Kaynes Semicon Ltd. and CG Semi Ltd., with combined investments running into thousands of crores and significant job creation potential.
Micron’s India unit alone has proposed an investment of Rs 13,000 crore with expected employment of over 20,000, while smaller projects such as Kaynes and CG Semi are focused on assembly, testing and packaging segments. CG Semi and Kaynes have proposed Rs 2150 crore and Rs 681 crore, respectively.
The approvals come at a time of increasing demand and competition for semiconductors as AI advances at breakneck speed.
