India’s long‑anticipated leap into homegrown chip manufacturing is becoming a reality as Tata Electronics breaks ground on the country’s first commercial semiconductor fabrication (fab) facility in the Dholera Special Investment Region (SIR) of Gujarat a major milestone in the nation’s Make in India and Techade initiatives. The project, backed by both the Government of India and State Government of Gujarat, marks a new chapter in India’s high‑tech manufacturing journey.
The state‑of‑the‑art semiconductor fab developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) represents a ₹91,000 crore (approximately $11 billion) investment and stands as the first major chip fabrication facility to be established on Indian soil. The plant will be equipped to produce advanced semiconductor wafers and chips for a variety of sectors including automotive, computing, AI, telecom and wireless communications, bolstering the country’s technological infrastructure.
Prime Minister Narendra Modi and key industry leaders have hailed the fab project as “historic”, emphasizing its role in reducing India’s dependency on imported chips and positioning the country as a significant player in the global semiconductor supply chain. CEO Dr. Randhir Thakur of Tata Electronics called the initiative a “significant boost to India’s journey of Chips for Viksit Bharat,” underscoring the strategic importance of domestic chip manufacturing.
Located near Ahmedabad, the facility is designed to be AI‑enabled and future‑ready, with a planned production capacity of up to 50,000 wafers per month. The project is also expected to create over 20,000 direct and indirect skilled jobs and galvanize ancillary industries in the region.
Construction is progressing rapidly, with government projections suggesting that the fab will be operational by 2026‑27, and the first chips made in India are anticipated to roll off the line as the facility ramps up manufacturing. As the heart of India’s semiconductor ecosystem, Dholera is fast emerging as a major high‑tech hub signalling a turning point in the nation’s technology landscape and strengthening its foothold in one of the most critical industries of the 21st century.
