<h3>Overview</h3> <p>The <strong>Ministry of Commerce &amp; Industry</strong> has formally notified the creation of a dedicated <span class="key-term" data-definition="Special Economic Zone — a designated area with fiscal and regulatory incentives to promote export‑oriented manufacturing and services (GS3: Economy)">SEZ</span> at <strong>Dholera, Gujarat</strong> for <span class="key-term" data-definition="Chip fabrication plant — a facility where semiconductor wafers are processed to create integrated circuits, critical for electronics and defence (GS3: Economy, GS4: Ethics)">chip fabrication plant</span>. The project, undertaken by <strong>M/s. Tata Semiconductor Manufacturing Private Limited</strong>, will span 66.166 hectares and is expected to generate about <strong>21,000 jobs</strong>. This marks India’s first dedicated semiconductor fab, signalling a major policy shift toward building a self‑reliant electronics ecosystem.</p> <h3>Key Developments</h3> <ul> <li>Notification of a <span class="key-term" data-definition="Special Economic Zone — a designated area with fiscal and regulatory incentives to promote export‑oriented manufacturing and services (GS3: Economy)">SEZ</span> exclusively for electronic hardware, software and IT/ITES at Dholera.</li> <li>Amendments to the <span class="key-term" data-definition="SEZ Rules, 2006 — the regulatory framework governing the establishment and operation of SEZs in India, recently amended to ease semiconductor investments (GS3: Economy)">SEZ Rules, 2006</span> (dated 03‑06‑2025) reduce minimum land from 50 ha to 10 ha, relax encumbrance norms and allow domestic sales in the <span class="key-term" data-definition="Domestic Tariff Area (DTA) — the part of India where normal customs duties apply; SEZ units can sell domestically by paying duties (GS3: Economy)">Domestic Tariff Area (DTA)</span> on payment of duties.</li> <li>Approval of other semiconductor‑related SEZs: <span class="key-term" data-definition="Micron Semiconductor Technology India Pvt Ltd — a subsidiary of US‑based Micron, setting up an assembly‑testing‑packaging SEZ in Gujarat (GS3: Economy)">Micron Semiconductor Technology India Pvt Ltd</span> (₹13,000 crore) in Sanand, Gujarat; and <span class="key-term" data-definition="Aequs Group — an Indian electronics firm establishing an electronic component manufacturing SEZ in Karnataka (GS3: Economy)">Aequs Group</span> in Dharwad, Karnataka.</li> </ul> <h3>Important Facts</h3> <ul> <li>Land area: <strong>66.166 hectares</strong> for the Dholera semiconductor SEZ.</li> <li>Employment generation: <strong>≈21,000 skilled jobs</strong> across design, fabrication, testing and ancillary services.</li> <li>Policy incentives: tax holidays, duty‑free import of capital goods, and a single‑window approval mechanism.</li> <li>Strategic aim: reduce import dependence on semiconductor chips, foster domestic value chains and attract high‑value foreign investment.</li> </ul> <h3>UPSC Relevance</h3> <p>The