The Tata Group is ushering in a new era of technological self-reliance for India, having officially begun construction on the nation’s first-ever commercial semiconductor fabrication plant in the Dholera Special Investment Region (SIR).
The massive facility, spearheaded by Tata Electronics, represents a monumental investment of ₹91,000 crore (approximately $11 billion) and is a cornerstone of the country’s ambition to become a global semiconductor manufacturing hub.
The Dholera plant is set to be a state-of-the-art facility, incorporating cutting-edge technology to achieve maximum efficiency and precision.
- AI-Driven Automation: Tata has committed to building India’s first AI-enabled fabrication unit, leveraging advanced factory automation, data analytics, and machine learning to optimize the highly complex chip-making process.
- Production Capacity: The mega-factory will have a capacity of up to 50,000 wafer starts per month (WSPM).
- Product Focus: The chips manufactured will cater to key, high-demand sectors globally, including Automotive, Artificial Intelligence (AI), Computing, and Communications, with a focus on nodes from 28nm to 110nm.
The project is a collaboration with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC), which is providing the technology and execution expertise for the greenfield facility.
The project is a vital component of the government’s India Semiconductor Mission (ISM), which has committed to providing 50% fiscal support for the eligible project costs.
“This is a historic milestone for India’s technology industry,” said a spokesperson for Tata Electronics, emphasizing the plant’s role in significantly de-risking global supply chains and securing domestic access to a critical technology.
The facility is expected to be a major economic and employment catalyst, generating over 20,000 direct and indirect skilled jobs, and anchoring a massive new ecosystem of ancillary industries in the Dholera region. The first “Made in India, Made by Indians” chips from the Dholera fab are currently projected to roll out by December 2026.
