SEZ Rule Easing to Boost MSMEs, Startups in Semiconductor and Component

Quote from Mr. Ashok Chandak, President, IESA and SEMI India

“IESA and SEMI commend the Ministry of Commerce notification and the support of the Ministry of Electronics & IT for introducing timely reforms to the SEZ framework tailored for the semiconductor and electronics components sector. The relaxation of contiguous land area requirements—from 50 hectares to just 10 hectares—and allowing use of encumbered land are landmark steps. These reforms make it significantly easier for companies to establish facilities and scale production in India’s high-tech manufacturing ecosystem. This Will help the MSME and Start Up’s to flourish further and boost chip, electronic manufacturing and also investor interest.

By liberalizing the policy and aligning it with the realities of land availability and global competitiveness, the government has reinforced India’s ambition to become a global electronics manufacturing destination. These measures will particularly benefit the manufacturing of strategic components such as Discrete Semiconductors, IC’s, PCBs, display and camera modules, battery packs, Passive Components, and Li-ion cells—core building blocks for devices ranging from smartphones and EVs to data centres.

This is a timely and strategic push that strengthens the ‘Design in India to Make in India’ mission, and it will help create new investment pipelines, generate employment, and reduce dependence on imports. SEMI and IESA stand ready to support these efforts by working with the industry and the government to enable faster execution and deeper value addition across the electronics value chain.”