Govt approves Micron Semiconductors proposal to set up SEZ

By Admin

11 Jun, 2025

The Indian government has taken a significant step toward strengthening the country’s position in the global semiconductor and electronics manufacturing industry. On June 9, the Ministry of Commerce announced its approval for proposals from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Pvt Ltd (Aequs Group) to set up Special Economic Zones (SEZs) for the production of semiconductors and electronic components.

Major Investments in Gujarat and Karnataka

Micron will establish its SEZ facility in Sanand, Gujarat, across 37.64 hectares with a massive investment of ₹13,000 crore. This facility will be dedicated to the manufacturing of semiconductors and is expected to play a critical role in building a robust domestic chip-making infrastructure.

Simultaneously, Aequs Group will set up an SEZ in Dharwad, Karnataka, over an area of 11.55 hectares with an estimated investment of ₹100 crore. This SEZ will focus on the production of electronic components, enhancing India’s capacity in the electronics value chain.

Eased SEZ Rules to Encourage High-Tech Manufacturing

The approval comes after recent amendments to SEZ rules aimed at encouraging investment in capital-intensive, import-dependent sectors like semiconductors and electronic components. Recognizing the complexity and long gestation periods in these industries, the government has made the following rule changes:

• Minimum land area required for SEZs focused exclusively on semiconductor or electronic component manufacturing has been reduced from 50 hectares to 10 hectares.
  
  

• The value of goods received and supplied on a free-of-cost basis will now be included in Net Foreign Exchange (NFE) calculations.
  
  

• Rule 18 has been amended to allow SEZ units in these sectors to supply products to the Domestic Tariff Area (DTA) after paying applicable duties.
  
  

Strategic Significance of the Move

These reforms mark a pivotal moment for India's high-tech manufacturing aspirations. The policy support and regulatory simplification are expected to:

• Boost indigenous manufacturing of critical technology components
  
  

• Reduce import dependency
  
  

• Create high-skilled jobs
  
  

• Build a thriving semiconductor and electronics ecosystem
  
  

Conclusion

The approval of Micron and Aequs Group’s SEZ proposals signals India's commitment to becoming a global manufacturing hub for semiconductors and electronics. With enabling policies and strategic investments, India is laying the foundation for self-reliance in a sector that is crucial for its digital future.