Following the recent notification of a semiconductor fabrication facility in Dholera, the government’s broader strategy to build a comprehensive chip manufacturing ecosystem is beginning to take shape through targeted reforms and multiple SEZ approvals.
At the core of this push are key amendments to the Special Economic Zones (SEZ) Rules, 2006, notified in June 2025, aimed at making India more attractive for capital-intensive semiconductor investments.
The reduction in minimum land requirement from 50 hectares to 10 hectares, along with relaxed encumbrance norms and flexibility in domestic sales, has improved ease of doing business for electronics manufacturers.
These policy changes have already translated into a pipeline of major projects.
Micron Semiconductor Technology India is setting up an Assembly, Testing, Marking and Packaging (ATMP) unit in Sanand with an investment of ₹130 billion.
In Karnataka, the Aequs Group is developing an electronics component manufacturing SEZ in Dharwad, while companies such as CG Semi and Kaynes Semicon are establishing outsourced semiconductor assembly and testing (OSAT) facilities.
Together, these developments indicate a shift towards the creation of integrated semiconductor clusters across states.
The parallel growth of ATMP, OSAT, and component manufacturing units is essential for building a resilient domestic value chain.
Industry observers note that this multi-layered approach could help reduce import dependence, generate high-skilled employment, and position India as a competitive player in the global semiconductor landscape.
India’s semiconductor ambitions are now moving ahead of announcements toward execution.
