The Tata Electronics semiconductor fab in Dholera Special Investment Region (SIR) is a ₹91,000 crore mega-project with a production capacity of 50,000 wafer starts per month (WSPM).
In a landmark move aimed at positioning India as a global semiconductor manufacturing hub, the India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a Fiscal Support Agreement (FSA) for India’s first commercial semiconductor fabrication unit in Dholera, Gujarat. The agreement, signed in the presence of Gujarat Chief Minister Shri Bhupendra Patel, marks a crucial step in realizing India’s ambitions of self-reliance in semiconductor manufacturing under the modified programme for semiconductor & display manufacturing ecosystem in India.
91,000 Crore Semiconductor Fab with 50% Fiscal Support
The Tata Electronics semiconductor fab in Dholera Special Investment Region (SIR) is a ₹91,000 crore mega-project with a production capacity of 50,000 wafer starts per month (WSPM). To accelerate its execution, the Government of India, through ISM, has committed to providing 50% fiscal support on a pari-passu basis for eligible project costs, demonstrating an unwavering commitment to building a world-class semiconductor ecosystem in India.
India’s Emergence as a Global Semiconductor Leader
This semiconductor fab is expected to generate over 20,000 skilled jobs, directly and indirectly, and will create a powerful technological alliance with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). The facility will cater to critical global semiconductor markets, including automotive, computing, telecommunications, and artificial intelligence, marking India’s transition from a technology consumer to a key player in global semiconductor supply chains.
Shri Sushil Pal, CEO of the India Semiconductor Mission, emphasized, “The Government of India is committed to the timely disbursement of fiscal support for the execution of this project. This initiative underscores India’s ambitions in indigenous semiconductor manufacturing. We are confident that Tata Electronics will play a pivotal role in strengthening the electronics value chain and making a significant contribution to India’s overarching goals in this sector.”
“Chips for Viksit Bharat”: A Defining Milestone
Dr. Randhir Thakur, CEO and MD of Tata Electronics, described the FSA signing as a historic moment in India’s journey toward semiconductor self-sufficiency. He stated, “This is a historic milestone for India and Tata Electronics in its journey of establishing a semiconductor manufacturing industry in India. The Fiscal Support Agreement (FSA) solidifies our partnership with MeitY and ISM to realize our Hon’ble Prime Minister’s vision of manufacturing ‘Chips for Viksit Bharat.’ We are grateful to the MeitY and ISM leadership for their unwavering support and resolve in not only defining but operationalizing a globally leading subsidy framework through this FSA. With construction being undertaken with a great sense of urgency, Tata Electronics is deeply committed to building India’s first AI-enabled Fab in Dholera.”
Strengthening India’s Role in the Global Semiconductor Supply Chain
The semiconductor industry is crucial for technological innovation, economic growth, and national security. By establishing its first commercial semiconductor fab, India is not only creating employment opportunities but also strengthening its position as a reliable partner in global semiconductor supply chains.
The strategic fiscal support from the Government of India will accelerate the country’s semiconductor expansion, paving the way for India to become a leading player in the global semiconductor landscape. This transformative initiative is set to drive innovation, enhance supply chain resilience, and propel India into a new era of technological self-reliance, firmly aligning with the vision of Viksit Bharat 2047.
