Tata Group to build massive semiconductor fabrication facility in Dholera

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.

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The fab construction will begin this year with a total investment of up to Rs 91,000 crores (-USD 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.

Tata Electronics (a wholly owned subsidiary of Tata Sons Pvt. Ltd.) in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) will build India's first AI-enabled state-of-the art Fab. This Fab will have manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency.

The new semiconductor Fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as automotive, computing and data storage, wireless communication and artificial intelligence.

N Chandrasekaran, Chairman, Tata Sons had announced Tata Group's decision to build a semiconductor fab in Dholera in the 20th Vibrant Gujarat Summit in January 2024. Commenting on the planned semiconductor Fab he said, "Tata Group has a tradition of pioneering many sectors in the country, and we are confident that our entry in semiconductor fabrication will add to this legacy.