India approves Micron’s $1.5 billion Gujarat SEZ proposal
US semiconductor company Micron Technology will set up its SEZ facility in Sanand, Gujarat, while Indian diversified contract manufacturer Aequs will set up its SEZ in Dharwad, Karnataka.
The Indian government has approved proposals from Micron Technology and Aequs Group for setting up Special Economic Zones (SEZs) for manufacturing of semiconductors and electronic components.
US semiconductor company Micron will set up its SEZ facility in Sanand, Gujarat, with an estimated investment of ₹130 billion (USD 1.5 billion), while Indian diversified contract manufacturer Aequs will set up its SEZ in Dharwad, Karnataka, with an estimated investment of ₹1 billion (USD 11.5 million), according to a report by Indian news agency PTI.
“[T]he 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,” India’s commerce ministry said in a statement, according to the PTI report.
The government has also amended certain rules to promote investments and boost manufacturing in these high technology sectors.
An SEZ set up exclusively for the manufacturing of semiconductors or electronic components will require a minimum contiguous land area of only 10 hectares compared to the earlier 50 hectares requirement.
“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,” India’s commerce ministry said.
Micron Technology is a US-based producer of computer memory and computer data storage including DRAM, flash memory and SSDs. In June 2023, Micron announced plans to construct a new assembly and test facility in Sanand.
