Govt notifies India’s first chip fab plant: Rs 91,000 cr Tata Semicon plant

New Delhi: The government Thursday said it has notified India’s first chip fabrication plant, a special economic zone (SEZ) to be set up by Tata Semiconductor Manufacturing Private Limited exclusively for Electronic Hardware and Software including IT/ITES at Dholera, Gujarat.

The company has proposed an investment of Rs 91,000 crore to set up India's first chip fabrication unit.

The SEZ will be spread over 66.166 hectares of land and is poised to provide employment to 21,000 persons.


“The SEZ is designed to support electronic hardware, software, and IT-enabled services, and includes enabling infrastructure and a dedicated approval mechanism to streamline operations and logistics,” the commerce and industry ministry said in a statement.

The approval comes after the government amended SEZ rules in June 2025 to encourage semiconductor investments. Under the revised norms, the minimum contiguous land requirement for SEZs in semiconductor and electronics component manufacturing was reduced from 50 hectares to 10 hectares, making it easier for companies to set up projects.

Apart from Tata’s fab project, four additional semiconductor and electronics component SEZ proposals have also received approvals. These include plans by Micron Semiconductor Technology India Ltd, Kaynes Semicon Ltd, and CG Semi Ltd.

Micron Semiconductor Technology India Pvt Ltd is establishing an SEZ for semiconductor Assembly, Testing, Marking and Packaging in Sanand, Gujarat, with an estimated investment of Rs 13,000 crore, while Aequs Group is setting up an electronic component manufacturing SEZ in Dharwad, Karnataka.

“These projects are expected to catalyse the development of domestic value chains, generate high-skilled employment, and reduce import dependence,” the ministry said.

Meanwhile, Kaynes and CG Semi are focusing on assembly, testing and packaging operations, with proposed investments of Rs 681 crore and Rs 2,150 crore, respectively.