Government Approves Tata Semiconductor Fab in Dholera
In a major step towards building a “Make in India, For the World” semiconductor ecosystem, the Government of India approved Tata Electronics’ proposal to establish India’s first commercial semiconductor fabrication plant in Dholera Special Investment Region (Dholera SIR), Gujarat.
The project will be developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) and represents one of India’s largest technology manufacturing investments.
The semiconductor fab will be built with an investment of approximately ₹91,000 crore (US$11 billion) and is expected to generate more than 20,000 direct and indirect skilled jobs.
India’s First AI-Enabled Semiconductor Fabrication Plant
The upcoming Dholera semiconductor fab will be India’s first AI-enabled, state-of-the-art semiconductor manufacturing facility.
Planned Manufacturing Capacity
- Production capacity of up to 50,000 wafers per month
- Deployment of next-generation factory automation
- Integration of data analytics and machine learning
- Advanced manufacturing systems aimed at achieving industry-leading efficiency
The plant will manufacture semiconductor chips for several high-growth sectors, including:
- Automotive and electric vehicles
- Computing and data storage
- Wireless communications
- Artificial Intelligence (AI)
- Industrial electronics
- Consumer electronics
Chips to Be Manufactured at the Dholera Fab
The facility will manufacture a broad range of semiconductor products, including:
- Power Management Integrated Circuits (PMICs)
- Display Driver Chips
- Microcontrollers (MCUs)
- High-Performance Computing Logic Chips
These products are expected to address both India’s growing domestic semiconductor demand and global market requirements.
PSMC to Provide Technology and Manufacturing Support
Powerchip Semiconductor Manufacturing Corporation (PSMC), one of Taiwan’s leading semiconductor foundry companies, will provide:
- Semiconductor manufacturing technology
- Process know-how and execution support
- Access to mature and advanced process nodes
- High-volume manufacturing expertise
- Semiconductor ecosystem development support
The partnership will provide access to technologies across multiple nodes, including:
- 28nm
- 40nm
- 55nm
- 90nm
- 110nm
This collaboration is expected to accelerate India’s entry into the global semiconductor manufacturing industry.
Why Dholera Was Selected for India’s First Semiconductor Fab
Dholera was chosen because it is being developed as a greenfield industrial smart city with world-class infrastructure and strong connectivity.
The region is supported by:
- Ahmedabad-Dholera Expressway
- Dholera International Airport
- Proposed rail connectivity
- Future seaport development
- Freight and logistics infrastructure
- Large-scale industrial land availability
Such infrastructure is essential because semiconductor manufacturing requires seamless movement of equipment, raw materials, utilities, skilled workforce, and finished products.
Tata Group’s Vision for Semiconductor Manufacturing
Tata Sons Chairman N. Chandrasekaran announced the semiconductor fab project during the 20th Vibrant Gujarat Global Summit in January 2024.
According to Tata Group, semiconductors will become one of the world’s most critical technologies as artificial intelligence and digitalisation continue to transform industries.
Industry estimates suggest:
- The global semiconductor industry could reach US$1 trillion by 2030
- India’s semiconductor demand is expected to exceed US$110 billion by 2030
The company believes domestic semiconductor manufacturing will strengthen supply chain resilience and position India as an important player in the global semiconductor ecosystem.
Tata Electronics: A New Era for India’s Semiconductor Industry
Commenting on the project, Dr Randhir Thakur, CEO and Managing Director of Tata Electronics, described the project as the beginning of a new era for India’s semiconductor sector.
According to Tata Electronics, the partnership with PSMC will:
- Bring advanced semiconductor technologies to India
- Support high-volume chip manufacturing
- Strengthen India’s semiconductor ecosystem
- Improve supply chain resilience for global customers
- Meet India’s rapidly growing domestic chip demand
Economic Impact and Employment Generation
The semiconductor fab is expected to become one of the largest industrial projects in Dholera.
Expected Benefits
- More than 20,000 direct and indirect skilled jobs
- Growth of semiconductor suppliers and ancillary industries
- Attraction of global technology investments
- Development of semiconductor manufacturing capabilities in India
- Strengthening of India’s industrial ecosystem
Tata Group’s broader multi-fab vision for Dholera is projected to create over 1,00,000 skilled jobs in the long term.
About Tata Electronics
Founded in 2020 as a greenfield venture of the Tata Group, Tata Electronics operates across:
- Electronics Manufacturing Services (EMS)
- Semiconductor Assembly and Test
- Semiconductor Foundry
- Design Services
The company currently employs more than 15,000 people and has manufacturing facilities in Tamil Nadu and Karnataka.
About PSMC
Powerchip Semiconductor Manufacturing Corporation (PSMC) is one of Taiwan’s leading pure-play semiconductor foundry companies.
The company specialises in:
- Advanced memory technologies
- Custom logic integrated circuits
- Discrete semiconductor components
- Open foundry manufacturing services
PSMC currently operates:
- Two 8-inch wafer fabrication plants
- Three 12-inch wafer fabrication plants
- Approximately 8,000 employees worldwide
Conclusion
The Tata Semiconductor Dholera Project represents a historic milestone in India’s journey towards becoming a global semiconductor manufacturing hub. Backed by an investment of ₹91,000 crore, advanced technology partnerships with PSMC, and next-generation AI-enabled manufacturing capabilities, the project is expected to transform Dholera into one of India’s most important semiconductor and technology centres.
Beyond chip manufacturing, the project has the potential to generate large-scale employment, attract supporting industries, and strengthen India’s position in global semiconductor supply chains while accelerating the development of Dholera Smart City as a major industrial and innovation destination.