India's Semiconductor Ambitions: Micron and Aequs Set to Establish SEZs
Government Approves Semiconductor Manufacturing SEZs
New Delhi: On Monday, the Indian government announced its approval for proposals from Micron Semiconductor Technology India and Hubballi Durable Goods Cluster (Aequs Group) to create Special Economic Zones (SEZs) focused on semiconductor and electronic component manufacturing.
Micron plans to build its SEZ in Sanand, Gujarat, covering 37.64 hectares with an investment estimated at ₹13,000 crore. Meanwhile, Aequs will set up its SEZ in Dharwad, Karnataka, spanning 11.55 hectares with an investment of ₹100 crore.
This decision comes after the government relaxed certain SEZ regulations to encourage semiconductor and electronics manufacturing.
The commerce ministry stated, "The Board of Approval for SEZs has granted approval for the proposals from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) to establish SEZs for semiconductor and electronic component production, respectively."
Given that manufacturing in these sectors is capital-intensive, reliant on imports, and typically has longer timelines for profitability, the government has amended rules to attract significant investments and enhance manufacturing in these advanced technology fields.
A notable change allows SEZs dedicated to semiconductor or electronic component manufacturing to require a minimum contiguous land area of just 10 hectares, down from the previous 50 hectares.
Additionally, the value of goods received and supplied at no cost will now be factored into Net Foreign Exchange (NFE) calculations.
Furthermore, amendments to Rule 18 of the SEZ Rules will enable SEZ units in the semiconductor and electronics sectors to supply products domestically to the Domestic Tariff area after paying the necessary duties.
These regulatory changes are expected to significantly enhance high-tech manufacturing in India, foster the growth of the semiconductor ecosystem, and generate high-skilled employment opportunities.
The Department of Commerce officially notified these amendments on June 3, 2025.