The Tata Semiconductor Fab in Dholera, Gujarat, is a historic milestone, marking India’s bold entry into the global chip-making arena. Launched by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), this $11 billion (INR 91,000 crore) project broke ground in March 2024 and aims to roll out its first chips by late 2026. With a capacity to produce 50,000 wafers per month, the AI-enabled facility will manufacture chips for automotive, artificial intelligence, wireless communication, and high-performance computing, addressing both domestic and global demand.
This ambitious Tata Semiconductor Fab project is more than just a factory—it’s a catalyst for India’s technological self-reliance. The initiative, backed by the government’s India Semiconductor Mission, is expected to create over 20,000 direct and indirect jobs, empowering local youth with high-tech opportunities. The facility will leverage advanced automation, data analytics, and machine learning to achieve industry-leading efficiency, positioning India as a key player in the global semiconductor supply chain. Natarajan Chandrasekaran, Chairman of Tata Sons, emphasized, “This collaboration with PSMC will drive innovation and strengthen global supply chains.”
Beyond Gujarat, Tata Electronics is also building a $3.26 billion semiconductor assembly and testing unit in Jagiroad, Assam, set to start production by mid-2025. This facility will produce 48 million chips daily, focusing on wire bond, flip chip, and integrated systems packaging technologies. Together, these projects align with the ‘Make in India’ vision, reducing reliance on imported chips and boosting sectors like electric vehicles, telecom, and consumer electronics.
The Tata Semiconductor Fab comes at a critical time. The global chip shortage during the COVID-19 pandemic exposed vulnerabilities in supply chains, underscoring the need for domestic manufacturing. India’s push to become a semiconductor hub is gaining traction, with the government approving three chip plants worth INR 1.26 lakh crore in 2024, including Tata’s ventures and a CG Power facility in Sanand, Gujarat. These efforts not only enhance national security but also position India to meet the rising demand for chips in AI, 5G, and automotive industries.
The project’s ripple effects are profound. By fostering a local semiconductor ecosystem, Tata is attracting suppliers, creating jobs, and nurturing talent. The Dholera fab will produce chips starting at 28 nanometers, with plans to advance to 22 nm, catering to industries like defense and medical devices. Meanwhile, the Assam unit will support global OEMs, making India a trusted partner in the semiconductor value chain.
For India’s youth, the Tata Semiconductor Fab offers a gateway to high-skill careers in a cutting-edge industry. The collaboration with PSMC brings world-class expertise, ensuring the facility meets global standards of quality and sustainability. As Prime Minister Narendra Modi noted during the foundation-laying ceremony, this is a “historic step toward a resilient future.” The Tata Semiconductor Fab is not just about chips—it’s about building a stronger, self-reliant India ready to compete on the global tech stage.