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Dholera Site Approved for India's First Chip Fab
The government has officially designated a Special Economic Zone (SEZ) in Dholera, Gujarat, for Tata Semiconductor Manufacturing Pvt Ltd. This approval allows the company to proceed with its ₹91,000 crore investment in India's first semiconductor fabrication plant. The SEZ will cover 66.16 hectares and is expected to create around 21,000 jobs.
Boosting India's Semiconductor Manufacturing
The project is a major step in India's strategy to build its own semiconductor industry. By setting up this fabrication plant, India hopes to lower its dependence on imported chips and strengthen its role in the global supply chain. The Board of Approval, led by the commerce secretary, has given its backing to the project.
Policy Support Fuels New SEZs
To support this growth, the government has lowered the minimum land requirement for semiconductor and electronics SEZs from 50 to 10 hectares. This policy change has already led to five new SEZs being notified. Other companies involved in the sector include CG Semi, Kaynes Semicon, and Micron Semiconductor Technology India. These SEZs offer benefits like tax advantages, simpler regulations, and better infrastructure to encourage manufacturing.