Tata Electronics is establishing India’s first semiconductor manufacturing plant in Dholera, Gujarat. The total cost of the project is ₹91,000 crore (~$11 billion). The construction of the plant is underway and it is expected to be operational by December 2026. Some reports, however, suggest that the project may be completed by 2027-2028.
Tata Electronics has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) for this project. PSMC is providing the required technical expertise.
This facility will utilise state-of-the-art technology, with AI-enabled automation and data analysis.
“PSMC has given us access to a wide portfolio of technology. Semicon is the foundational industry for everything digital. We will create more than 50,000 jobs. This is just the beginning,” said Chandrasekaran, chairman of Tata Sons, the group’s holding company.
Economic benefits
The project will create over 20,000 skilled jobs, providing a boost to employment. It will also strengthen India’s semiconductor ecosystem. Furthermore, approximately 1,500 housing units have been built in Dholera. These will house Tata Group employees and suppliers. Some of these housing units are already in use.
India’s first domestically manufactured semiconductor chip is likely to be launched in September-October 2025, indicating the project’s progress. This project will boost India’s semiconductor production capability. It is also another step towards the “Make in India, Make for the World” mission.
Semiconductor Fab Unit in Assam
Tata Electronics Pvt. Ltd has also established a semiconductor fabrication unit in Assam. It will begin with producing semiconductor chips starting at 28 nanometres, said N. Chandrasekaran. The group aims to begin commercial production here by 2026.
Industry experts have lauded the Tata Group’s plans. “With this groundbreaking endeavor, we edge closer to transforming India into a global semiconductor hub. We are driving innovation and economic growth. This secures our technological sovereignty,” said Ashok Chandak, president of the Indian Electronics and Semiconductor Association. Tata Electronics and Renesas are members of the association.
This is considered a major step for India. A domestic semiconductor industry would play a defining role in multiple industries.
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