India is determined to develop a domestic semiconductor manufacturing ecosystem. Taking a big step in this direction, Special Economic Zone (SEZ) has been approved for India’s private Tata Semiconductor Manufacturing Private Limited. According to the Commerce Ministry, the project, spread over an area of ​​66.16 hectares, will see an investment of around ₹91,000 crore and is expected to generate around 21,000 jobs.

The decision follows reforms made in June 2025 that reduced the minimum land requirement of SEZs for the semiconductor and electronics component sector from 50 hectares to 10 hectares. This policy change was aimed at rapidly attracting investment in the chip manufacturing sector.

Apart from TATA’s project, the government has also approved four other semiconductor and electronics component SEZs. These include Micron Semiconductor Technology India Private Limited, Keynes Semicon Private Limited and CG Semi Private Limited. Offers from companies like There is a possibility of investment of thousands of crores of rupees and employment generation on a large scale in these projects. Notably, Micron’s Indian unit has proposed an investment of ₹13,000 crore, which could create over 20,000 jobs.

Small-scale projects, such as the Keynes and CG Semi schemes, focus on critical areas such as assembly, testing and packaging (OSAT). CG Semi has proposed to invest ₹2,150 crore and Keynes has proposed to invest ₹681 crore. These sectors are vital parts of the semiconductor supply chain and play a vital role in developing the overall ecosystem in the country.

Additionally, Hubli Durable Goods Cluster Pvt Ltd has also received SEZ approval for electronics component manufacturing and services, with the potential for an investment of ₹100 crore and generation of 4,360 jobs.

The timing of all these projects is also important, as the demand for semiconductors is continuously increasing due to the rapid development of Artificial Intelligence globally. In such a situation, India’s effort to develop its own chip manufacturing infrastructure is important from economic as well as strategic point of view.

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