Govt clears SEZ proposals of Micron, Aequs for chip, electronics units

The government on Monday said it has approved the proposals from Micron Semiconductor Technology India and Hubballi Durable Goods Cluster (Aequs Group) for setting up SEZs for manufacturing of semiconductors and electronic components.

Micron will establish its SEZ facility in Sanand, Gujarat, over an area of 37.64 hectares with an estimated investment of Rs 13,000 crore, while Aequs will establish its SEZ in Dharwad, Karnataka, over an area of 11.55 hectares to manufacture electronics components with an estimated investment of Rs 100 crore.

The decision followed the easing of certain SEZ (special economic zone) rules to promote the manufacturing of semiconductors and electronics components.

"Subsequently, the Board of Approval for SEZs has accorded approval to the proposals received from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) for setting up SEZs for manufacturing of semiconductors and electronic components, respectively," the commerce ministry said in a statement.

Since manufacturing in these sectors is highly capital intensive, import dependent and involves longer gestation periods before turning profitable, rule amendments have been carried out to promote pioneering investments and boost manufacturing in these high technology sectors, it said.

As per a change in the rule, an SEZ set up exclusively for the manufacturing of semiconductors or electronic components will require a minimum contiguous land area of only 10 hectares, reduced from the earlier requirement of 50 hectares.

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

"Moreover, amendments have been made in Rule 18 of the SEZ Rules to allow SEZ units in the semiconductor as well as electronics component manufacturing sector to also supply domestically into the Domestic Tariff area after payment of applicable duties," it added.

The amendments will boost high-tech manufacturing in the country, spur the growth of the semiconductor manufacturing ecosystem and create high-skilled jobs in the country, it added.

These amendments have been notified by the Department of Commerce on June 3 2025.