The Indian government has approved a proposal from Tata Electronics to build a mega semiconductor fabrication facility in Dholera, Gujarat, in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC). The fab construction is expected to begin this year, with a total investment of up to INR 91,000 crores (~US$11bn) and generating over 20,000 direct and indirect skilled jobs in the region. N Chandrasekaran, Chairman of Tata Sons, announced the decision to build a semiconductor fab in Dholera at the 20th Vibrant Gujarat Summit in January 2024. He praised the move as a step towards India’s entry into global semiconductor fabrication
Tata Electronics will build India’s first AI-enabled state-of-the-art Fab, with a manufacturing capacity of up to 50,000 wafers per month and next-generation factory automation capabilities. Dr. Randhir Thakur, CEO & MD of Tata Electronics, expressed confidence that the upcoming Fab will support India’s ambitions of “Make in India, For the World” and serve global customers’ requirements for supply chain resilience.
The new semiconductor Fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU), and high-performance computing logic, addressing growing demand in markets such as automotive, computing and data storage, wireless communication, and artificial intelligence. Dr. Frank Huang, Chairman of PSMC, emphasized the potential of India’s entry into the semiconductor manufacturing industry and the potential for collaboration with Tata Electronics.