Semiconductor Stocks To Watch: Havells, Polycab, Dixon Shares In Spotlight As Govt Tweaks SEZ Rules

Semiconductor Stocks To Watch: Stocks like Havells India, Polycab, and Dixon Technologies may see increased investor interest after the central government announced big changes to the Special Economic Zone (SEZ) Rules. These changes are aimed at boosting high-tech manufacturing, especially in the semiconductor and electronics sectors, across the country.

These changes, officially notified on June 3, 2025, aim to make it easier for companies in the semiconductor and electronic components sector to set up and operate SEZs.

Relaxations for Semiconductor & Electronics Sector

One of the biggest changes is the reduction in the minimum land required to set up a semiconductor SEZ. Earlier, a sector-specific SEZ needed 50 hectares of land. Now, for semiconductor and electronics manufacturing, only 10 hectares are required. 

This move is expected to attract many smaller and mid-sized companies to enter the space and invest in India’s growing chip and component manufacturing ecosystem.

The government has also released a detailed list of eligible electronic products under this rule. These include display modules, camera parts, battery sub-assemblies, printed circuit boards (PCBs), lithium-ion cells, and hardware components for mobile phones, wearables, and IT devices. 

These categories cover some of the most in-demand parts in modern technology, which indicates that India wants to become a strong player in the global electronics supply chain.

Support for Global Service Manufacturing

Another important change is in how foreign exchange earnings will be calculated for companies in the semiconductor sector. Companies will now be allowed to include the value of goods received and supplied on a free-of-cost basis. This helps businesses that operate on complex supply models and will improve their eligibility for SEZ benefits.

In addition, Indian companies offering manufacturing services for overseas clients will now have more flexibility. They are no longer required to handle raw materials or capital goods themselves. They can now directly supply finished goods within India, to warehouses, or to other SEZ units as instructed by their global partners.

This allows companies to run leaner operations and still benefit from the SEZ framework.

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Textiles, Gujarat Get a Boost Too

The new rules also support other sectors. For instance, the minimum land requirement for textile SEZs in Gujarat has been brought down from 20 hectares to just 4 hectares. This can encourage more investment and job creation in that region.

For semiconductor and electronics stocks, these rule changes are a positive sign. They show the government’s long-term commitment to building a strong domestic manufacturing base for critical technology.

As India works to reduce its reliance on imports and become a global chip-making hub, listed companies involved in chip design, electronics manufacturing, battery production, and mobile component supply may stand to benefit.