Tata Electronics intends to build two new semiconductor factories in Dholera, Gujarat, in order to meet demand for chips both domestically and internationally.

For the first phase of the project, valued at Rs 91,000 crore, Tata is working with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). 

Tata Electronics To Set Up Two New Semiconductor Factories in Dholera

The plant is anticipated to begin chip production by 2026.

For the second and third fabs, the collaborations and schedules have not yet been decided. At the same scale as the first, production for these fabs is expected to start in five to seven years.

As per the official announcement by Tata, “In a significant step towards creating an indigenous (“Make in India, For the World”) semiconductor ecosystem in India, Government of India has approved a proposal from Tata Electronics to build a mega semiconductor fabrication facility (“Fab”) in Dholera, Gujarat in partnership with PSMC. The fab construction will begin this year with a total investment of up to INR 91,000 crores (~US$11bn) and will generate over 20,000 direct and indirect skilled jobs in the region. With this announcement, Tata Electronics enters the global semiconductor industry.”

After the first fab reaches capacity, decisions about the technology and chip nodes for subsequent fabs will be made depending on industry technological advancements and worldwide demand.

Tata Electronics began building at the Dholera Special Investment Region in March, and the first fab’s foundation is now being laid.

Tata Figuring Out Installation Capacity

Before moving to commercial manufacturing, the company is figuring out how much installation capacity is required to test the machinery and put up a prototype production line.

According to a senior executive, the three fabs might pool some of their equipment for chip manufacture, which would save billions of dollars in future investments compared to what the first fab had to pay.

Tata is currently negotiating with possible customers to create the chips from the first fab.

Tata Electronics is set to launch its second iPhone manufacturing plant in Hosur, Tamil Nadu, in November 2024. This new facility, spread across 250 acres, represents a significant milestone in Apple’s strategic expansion in India. With plans to employ 50,000 workers, predominantly women, this plant underscores both Tata and Apple’s commitment to enhancing local manufacturing capabilities.

The Hosur facility will be Apple’s fourth iPhone assembly plant in India and Tata’s second unit dedicated to the tech giant’s flagship smartphones. According to sources, preparations are in full swing, with the plant’s equipment and production lines undergoing rigorous stress-testing to meet the anticipated high demand. The plant is expected to accommodate around 20 assembly lines, making it the second-largest iPhone production facility in Tamil Nadu, following Foxconn’s operation.