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SEZ Rule Changes for Semiconductor Manufacturing

10 June 20251 min read
NATIONAL AFFAIRSSEZ Rule Changesfor SemiconductorManufacturing10 June 2025safalsetu.com

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

RuleChange
Rule 5Minimum area: 50 hectares cut to 10
Rule 18Domestic sales allowed after duties; earlier export only
Rule 7Board 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.

Test yourself

1. What is the revised minimum land requirement for semiconductor and electronic component SEZs under the amended SEZ Rules, 2006?

Rule 5 was changed from 50 hectares to 10 hectares for these SEZs.

2. Where is the new Micron Semiconductor Technology India SEZ approved in June 2025 located?

Micron's semiconductor manufacturing SEZ is at Sanand, Gujarat.

3. Under amended Rule 18, semiconductor and electronics SEZ units can now do what?

Units may supply to the Domestic Tariff Area after paying applicable duties.