The government announced on Monday the approval of two new Special Economic Zones (SEZs) for semiconductor and electronic components manufacturing. The proposals from Micron Semiconductor Technology India and Hubballi Durable Goods Cluster (Aequs Group) have been greenlit for setting up these zones.
Micron plans to build its SEZ facility in Sanand, Gujarat, spanning 37.64 hectares, with an estimated investment of Rs 13,000 crore. Aequs, on the other hand, will develop its SEZ in Dharwad, Karnataka, covering 11.55 hectares for electronic component production, with a projected investment of Rs 100 crore.
The approval comes after the government eased certain SEZ regulations to encourage semiconductor and electronics manufacturing. In a statement, the commerce ministry confirmed that the Board of Approval for SEZs had approved the proposals from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) to establish their SEZs.
Given that semiconductor manufacturing is capital-intensive, import-reliant, and takes a longer time to become profitable, regulatory changes were introduced to attract investment and stimulate the growth of high-tech industries in the country. Key changes include a reduction in the minimum land area required for semiconductor or electronic component manufacturing SEZs from 50 hectares to just 10 hectares. Additionally, the value of goods received and supplied on a free-of-cost basis will now be counted in Net Foreign Exchange (NFE) calculations.
Furthermore, amendments have been made to Rule 18 of SEZ regulations to allow semiconductor and electronics manufacturers to supply products domestically within the Domestic Tariff Area, provided they pay the applicable duties. These regulatory amendments, announced on June 3, 2025, are expected to promote high-tech manufacturing, strengthen the semiconductor ecosystem, and create skilled job opportunities in the country.
