Tata Chip Fab Gets SEZ Clearance
The Dholera notification advances Tata’s semiconductor project and underscores India’s push to build domestic chip manufacturing.
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[Image source: Krishna Prasad/MITSMR Middle East]
India has notified a special economic zone for Tata Semiconductor Manufacturing Pvt. Ltd in Dholera, Gujarat, clearing a regulatory step for what the government has described as the country’s first semiconductor fabrication plant.
Additional Secretary Ajay Bhadoo said the zone, notified on 9 April, will span 66.16 hectares and is expected to create about 21,000 jobs, The Press Trust of India reported.
The project is part of Tata Electronics Pvt. Ltd’s (TEPL) roughly ₹91,000 crore chip fabrication plant planned at Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC).
The Union cabinet approved the fab in February 2024, with planned capacity of 50,000 wafer starts per month.
The SEZ notification follows a policy change that lowered the minimum contiguous land requirement for semiconductor and electronics component SEZs to 10 hectares from 50 hectares, aimed at easing large manufacturing projects.
Bhadoo said five new SEZs have now been notified for the semiconductor and electronics component sectors, covering Tata Semiconductor Manufacturing in Dholera, CG Semi, Kaynes Semicon and Micron Semiconductor Technology India in Sanand, and Hubballi Durable Goods Cluster in Karnataka.
The government said this month that India has approved 10 semiconductor projects with investment commitments of about ₹1.6 trillion.
