Micron, Aequs to set up ₹13,100 Cr electronics SEZs

India has approved two new Special Economic Zones (SEZs) focused on semiconductor and electronics manufacturing. Micron will invest ₹13,000 crore in Gujarat, while Aequs plans ₹100 crore in Karnataka—marking a boost for high-tech manufacturing under eased SEZ norms.

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Micron Semiconductor Technology India Pvt Ltd (MSTI) and Aequs Group have received government approval to set up Special Economic Zones (SEZs) for semiconductor and electronic component manufacturing. The SEZ Board recently cleared both proposals as part of India’s efforts to boost high-tech manufacturing.

Micron will establish a large SEZ facility spanning 37.64 hectares in Sanand, Gujarat, with a planned investment of ₹13,000 crore. Aequs Group will set up a smaller 11.55-hectare SEZ in Dharwad, Karnataka, investing ₹100 crore to strengthen the electronic components sector.

These approvals follow recent government reforms aimed at encouraging investments in advanced manufacturing. A major change includes reducing the minimum land requirement for electronics and semiconductor SEZs from 50 hectares to just 10 hectares. This move lowers entry barriers and makes it easier for companies to invest in these critical sectors.

Other key reforms include easing rules on land encumbrances, allowing SEZ units to sell their products within India after paying the applicable duties. This broadens the market access for SEZ-based companies, helping them cater to domestic demand more easily.

Additionally, changes in the calculation of Net Foreign Exchange (NFE) now allow the value of free-of-cost goods to be included. This better reflects the business realities of companies operating in the electronics and semiconductor sectors.

Together, these steps are expected to attract more investment and strengthen India’s position as a global hub for high-tech manufacturing, especially in semiconductors and electronic components.