Fuelled by ₹130 billion and ₹1 billion investments, Micron and Aequs gain SEZ approvals, powering India’s semiconductor and electronics push in Gujarat and Karnataka.
The Government of India has approved the establishment of two new Special Economic Zones (SEZs) for semiconductor and electronic component manufacturing. The proposals were submitted by Micron Semiconductor Technology India Pvt Ltd (MSTI) and Aequs Group.
Micron will set up its SEZ in Sanand, Gujarat, over 37.64 hectares, with an estimated investment of ₹130 billion. The facility is expected to play a key role in strengthening India’s semiconductor production capabilities.
Aequs Group will establish its SEZ in Dharwad, Karnataka, spanning 11.55 hectares, with an investment of ₹1 billion focused on electronics component manufacturing.
The projects were cleared by the SEZ Board following recent regulatory reforms aimed at advancing high-tech manufacturing.
According to a report by The Economic Times, one of the major changes includes reducing the minimum land requirement for semiconductor and electronics SEZs from 50 to 10 hectares. This relaxation lowers entry barriers for companies and is intended to accelerate the development of manufacturing infrastructure.
Furthermore, the revised rules now permit SEZ units in these sectors to sell their products in the domestic market upon payment of applicable duties, thereby increasing market flexibility.
Additionally, the value of goods received or supplied on a free-of-cost basis can now be included in Net Foreign Exchange (NFE) calculations, aligning regulations with industry practices.
As per the Ministry of Commerce, these SEZ updates address the specific needs of the semiconductor and electronics sectors, which are highly capital-intensive and have long gestation periods.
The reforms are designed to support sustainable growth, reduce import dependence, and foster innovation and employment within India.
