Tata Electronics to Build India’s First ₹91,000 Crore Semiconductor Fab in Gujarat

India has made a major stride towards achieving semiconductor self-sufficiency with the signing of a Fiscal Support Agreement (FSA) between the India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL). This landmark agreement, formalized in the presence of Gujarat Chief Minister Bhupendra Patel, sets the foundation for establishing the nation’s first commercial semiconductor fabrication facility in Dholera, Gujarat.

Massive Investment for India’s First Semiconductor Fab

The upcoming Tata Electronics semiconductor fabrication (fab) facility will see an investment of over ₹91,000 crore, making it one of India’s largest technology investments to date. With a production capacity of 50,000 wafers per month (WSPM), the project will cater to various high-demand industries, including automotive, computing, communications, and artificial intelligence (AI).

Government’s Commitment to Semiconductor Growth

To facilitate this ambitious project, the Government of India, under the India Semiconductor Mission (ISM), has committed to providing 50% financial support on a pari-passu basis for eligible project expenses.This move highlights India's growing determination to reduce its reliance on foreign chip manufacturers and build a robust semiconductor ecosystem.

Key Benefits of the Tata Semiconductor Fab:

• Employment Generation: The project is expected to create over 20,000 direct and indirect skilled jobs, providing a massive boost to India’s workforce.

• Economic Growth: The semiconductor facility will contribute significantly to India’s GDP and technology-driven exports.

• Technological Advancement: India will strengthen its position in the global semiconductor supply chain.

Collaboration with Taiwan’s PSMC for Global Expertise

To ensure world-class manufacturing capabilities, Tata Electronics has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). This collaboration will integrate cutting-edge global expertise into India’s semiconductor sector, further positioning the country as a formidable player in the international chip market.

Leaders Speak on India’s Semiconductor Vision

Sushil Pal, CEO of the India Semiconductor Mission (ISM), emphasized the government’s commitment to supporting indigenous chip manufacturing, stating:

“This initiative highlights India’s ambition in indigenous semiconductor manufacturing. We are confident that Tata Electronics will play a pivotal role in strengthening the electronics value chain.”

Echoing the same sentiment, Dr. Randhir Thakur, CEO & MD of Tata Electronics, called the development a “historic milestone” for India’s semiconductor industry. He further added:

“The Fiscal Support Agreement solidifies our partnership with MeitY and ISM to realize our Hon’ble Prime Minister’s vision of ‘Chips for Viksit Bharat.’ Tata Electronics is committed to building India’s first AI-enabled fab in Dholera.”

Strategic Importance of India’s Semiconductor Mission

The establishment of the Tata Semiconductor Fab is a key step towards making India a global hub for semiconductor manufacturing. By reducing import dependency and strengthening domestic capabilities, India is setting the stage for long-term technological and economic sustainability.

Impact of the Tata Semiconductor Fab:

• Supply Chain Resilience: Helps mitigate risks from global chip shortages.

• Boost to Make in India: Supports local manufacturing and export potential.

• Enhancing India’s Competitiveness: Strengthens India's foothold in the electronics and semiconductor industry.

Conclusion

The establishment of Tata Electronics' semiconductor fabrication unit in Dholera marks a transformative milestone in India's journey towards technological self-reliance. With a massive investment of ₹91,000 crore and strong government backing through the India Semiconductor Mission (ISM), this project is set to enhance India’s position in the global semiconductor landscape.

The partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) brings international expertise, ensuring state-of-the-art chip production that will cater to industries like AI, computing, communications, and automotive.

Beyond technological advancements, this initiative is expected to generate over 20,000 skilled jobs, fostering economic growth and innovation. It also strengthens India's electronics value chain, reducing dependency on foreign semiconductor imports and enhancing supply chain resilience.

As Tata Electronics pioneers India’s first AI-enabled semiconductor fab, this venture not only supports the 'Chips for Viksit Bharat' vision but also positions the country as a key player in the global semiconductor ecosystem