In a major boost to India’s semiconductor manufacturing ambitions, India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a Fiscal Support Agreement (FSA) for the establishment of India’s first commercial semiconductor fabrication plant in Dholera, Gujarat.

Project Overview

• Total Investment: ₹91,526 crore
• Location: Dholera Special Investment Region (SIR), Gujarat
• Capacity: 50,000 wafers starts per month (WSPM)
• Government Support: 50% fiscal support from the Government of India through ISM

Transforming India into a global semiconductor hub

The facility will cater to critical global semiconductor markets, including automotive, computing, communications, and artificial intelligence (AI). It is expected to create over 20,000 direct and indirect skilled jobs and foster technological innovation in India.

Key Statements

Shri Sushil Pal, CEO of India Semiconductor Mission, emphasized the government’s commitment to timely disbursement of fiscal support for the project, reinforcing India’s goal of self-reliance in semiconductor manufacturing.

Dr. Randhir Thakur, CEO & MD of Tata Electronics, called the agreement a historic milestone for both India and Tata Electronics, aligning with the vision of manufacturing “Chips for Viksit Bharat.”

With Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) providing expertise, this partnership aims to position India as a reliable partner in the global semiconductor supply chain, further strengthening the electronics manufacturing ecosystem.