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