SF Prep Notes

Government notifies SEZ at Dholera for Tata Semiconductor's chip fabrication plant, India's first

The Commerce Ministry said on 16 April 2026 that it has notified a Special Economic Zone at Dholera, Gujarat, to be set up by Tata Semiconductor Manufacturing Pvt Ltd for India's first chip fabrication plant, spread over 66.166 hectares and expected to employ 21,000 people.

Summary

The Ministry of Commerce and Industry said on 16 April 2026 that the Government has notified a Special Economic Zone (SEZ) to be set up by Tata Semiconductor Manufacturing Pvt Ltd at Dholera, Gujarat, exclusively for electronic hardware and software including IT/ITES. The SEZ, India's first chip fabrication plant, will be spread over 66.166 hectares and is expected to employ 21,000 people. The SEZ Rules, 2006 were amended on 3 June 2025 for semiconductor and electronics units, including cutting the minimum land requirement from 50 hectares to 10 hectares and allowing domestic sales in the Domestic Tariff Area on payment of duty. Other SEZs approved after this include Micron's assembly, testing, marking and packaging unit at Sanand, Gujarat (about ₹13,000 crore) and an Aequs electronic components SEZ at Dharwad, Karnataka.

Key facts

Developer
Tata Semiconductor Manufacturing Pvt Ltd
Location
Dholera, Gujarat
Area
66.166 hectares
Employment
21,000 (expected)
Significance
India's first chip fabrication plant
SEZ Rules change (3 June 2025)
Minimum land 50 ha → 10 ha for semiconductor/electronics SEZs
Other SEZs
Micron ATMP, Sanand (~₹13,000 cr); Aequs, Dharwad

Practice MCQs 3 questions

Q1

The SEZ notified in April 2026 for India's first chip fabrication plant, by Tata Semiconductor Manufacturing, is located at:

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Correct answer: B — Dholera

The SEZ is at Dholera, Gujarat; Sanand hosts Micron's ATMP SEZ and Dharwad the Aequs SEZ.

Q2 Advanced

The amendment to the SEZ Rules, 2006 notified on 3 June 2025 for semiconductor and electronics SEZs reduced the minimum land requirement:

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Correct answer: D — From 50 hectares to 10 hectares

The minimum land requirement was reduced from 50 hectares to 10 hectares.

Q3 Advanced

Consider the following statements about the Dholera SEZ notified in April 2026: 1. It will be spread over 66.166 hectares. 2. It is expected to provide employment to 21,000 persons. Which of the statements given above is/are correct?

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Correct answer: C — Both 1 and 2

Both are correct as per the Commerce Ministry.

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