Govt clears Micron and Aequs SEZ proposals to boost semiconductor and electronics manufacturing
New Delhi: The government has approved two new Special Economic Zones (SEZs) proposed by Micron Semiconductor Technology India and the Hubballi Durable Goods Cluster (part of the Aequs Group), aimed at expanding semiconductor and electronic component manufacturing in the country.
Micron will establish its SEZ in Sanand, Gujarat, on a 37.64-hectare plot, with an estimated investment of ₹13,000 crore, The Economic Times reported, citting the announcement made on Monday.
Meanwhile, Aequs will set up its facility in Dharwad, Karnataka, over 11.55 hectares with a projected investment of ₹100 crore.
The approvals follow recent amendments to SEZ rules intended to incentivise high-tech manufacturing, particularly in sectors like semiconductors and electronic components, which are typically capital-intensive, reliant on imports, and involve long gestation periods before becoming profitable.
“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.
As per the revised regulations, the minimum contiguous land area required for setting up an SEZ for semiconductor or electronic component manufacturing has been reduced from 50 hectares to just 10 hectares.
Additionally, the value of goods received and supplied free of cost will now be counted towards Net Foreign Exchange (NFE) calculations — a key metric for SEZ performance.
Further, amendments to Rule 18 of the SEZ Rules will now allow SEZ units in these sectors to sell into the Domestic Tariff Area (DTA) after paying applicable duties, enhancing market access for such units.
The commerce ministry noted that these changes, notified on June 3, 2025, are expected to give a strong push to high-technology manufacturing, support the growth of India’s semiconductor ecosystem, and generate high-skilled employment opportunities.
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