New Delhi: The Indian government on Monday approved a proposal from Micron Semiconductor Technology India to set up a Special Economic Zone (SEZ) dedicated to semiconductor manufacturing in Sanand.

Micron’s facility will be established in Sanand, spread across 37.64 hectares, with an estimated investment of ₹13,000 crore. These approvals follow recent relaxations in SEZ regulations aimed at encouraging high-tech manufacturing, particularly in semiconductors and electronics. The amendments were notified by the Department of Commerce on June 3, 2025.

The Ministry of Commerce & Industry, in an official statement, said, “After amendments in Rule 5 of SEZ Rules, 2006, 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. Further, amendment to Rule 7 of SEZ Rules, 2006, allows the Board of Approval for SEZs to relax the condition requiring SEZ land to be encumbrance-free in cases where it is mortgaged or leased to the Central or State Government or their authorized agencies.”

“The amended Rule 53 will allow the value of goods received and supplied on a free-of-cost basis to be included in Net Foreign Exchange (NFE) calculations and assessed using applicable customs valuation rules. Moreover, amendments have been made in Rule 18 of the SEZ Rules to allow SEZ units in semiconductor as well as electronics component manufacturing sector to also supply domestically into the Domestic Tariff area as well after payment of applicable duties,” the note added.

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

Furthermore, Hubballi Durable Goods Cluster Private Ltd (Aequs Group) has also received approval to set up an SEZ for the manufacturing of electronic components. Aequs will establish its SEZ in Dharwad, Karnataka, over an area of 11.55 hectares to manufacture electronic components, with an estimated investment of ₹100 crore. DeshGujarat