Tata Semiconductor SEZ in Gujarat to create 21,000 jobs with Rs 91,000 crore investment

The central government has notified a Special Economic Zone (SEZ) for Tata Semiconductor Manufacturing Private Limited at Dholera, Gujarat. This facility, India's first chip fabrication plant, will cover 66.166 hectares and is projected to employ 21,000 people in electronic hardware, software, and IT-enabled services. The total investment is set at Rs 91,000 crore.

Key Highlights

• Tata Semiconductor SEZ in Gujarat to employ 21,000 people with Rs 91,000 crore investment
• Four other semiconductor SEZs approved after regulatory changes in 2025
• SEZs aim to boost domestic value chains and reduce import dependence in India

Key Details of Tata Semiconductor SEZ

The SEZ at Dholera includes enabling infrastructure and a dedicated approval mechanism to streamline operations and logistics. It will function as an AI-enabled semiconductor fabrication facility. The government issued the notification on April 9, 2026, following amendments to the SEZ Rules, 2006, made on June 3, 2025.

These amendments reduced the minimum land requirement from 50 hectares to 10 hectares, introduced flexibility in encumbrance norms, included free-of-cost supplies in net foreign exchange calculations, and allowed domestic sales in the domestic tariff area with applicable duties. Since these regulatory changes, the Board of Approval for SEZs has cleared four other semiconductor and electronics SEZs. These approvals aim to boost domestic manufacturing and reduce reliance on imports.

Other Recent Semiconductor SEZ Approvals

Micron Semiconductor Technology India Pvt. Ltd. received notification on June 23, 2025, for an assembly, testing, Marking and packaging unit at Sanand, Gujarat. This SEZ covers 37.64 hectares, with a proposed investment of Rs 13,000 crore and projected employment of 20,786.

On the same date, Hubballi Durable Goods Cluster Private Limited was approved for an electronics components manufacturing SEZ in Karnataka. This facility spans 11.549 hectares, with a proposed investment of Rs 100 crore and projected employment of 4,360.

CG Semi Pvt. Ltd. was notified on September 23, 2025, about an outsourced semiconductor assembly and testing unit across 11.541 hectares. The proposed investment is Rs 2,150 crore, with a projected employment of 1,911.

Kaynes Semicon Pvt. Ltd. received notification on September 26, 2025, for an OSAT unit across 18.44 hectares. The investment is projected at Rs 681 crore, with employment for 2,020 people.

Impact on Domestic Semiconductor Sector

The government expects these SEZs to develop domestic value chains, generate high-skilled employment, and reduce import dependence in the semiconductor sector. The new facilities are designed to support India's growing demand for advanced electronics and strengthen the country's position in the global semiconductor industry.

CarBike 360 Says

Tata’s semiconductor SEZ in Gujarat signals a transformative shift in India’s industrial landscape, strengthening the country’s push toward self-reliance in chip manufacturing. With a massive investment and thousands of jobs on the horizon, this project not only boosts economic growth but also positions India as a key global player in the semiconductor ecosystem.