SEZ Rule Changes for Semiconductor Manufacturing
Why in the news
The Centre eased SEZ Rules, 2006 for chip and electronic part zones in June 2025 and approved two new SEZs.
Key facts
| Rule | Change |
|---|---|
| Rule 5 | Minimum area: 50 hectares cut to 10 |
| Rule 18 | Domestic sales allowed after duties; earlier export only |
| Rule 7 | Board of Approval may relax encumbrance-free land norm for land mortgaged or leased to government agencies |
Objectives
- Attract high-tech investment despite heavy capital needs and long gestation.
- Build a semiconductor ecosystem and cut import dependence.
New approvals
- Micron Semiconductor Technology India: Sanand, Gujarat.
- Hubballi Durable Goods Cluster (Aequs Group): Dharwad, Karnataka; electronic components.