India is taking a bold step into the global semiconductor manufacturing arena with the construction of its first AI-enabled semiconductor fabrication plant in Dholera, Gujarat. Led by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), the Rs 910 billion facility aims to establish India as a major player in the global semiconductor supply chain. Strategically located in the Dholera Special Investment Region (SIR), this initiative is set to transform India’s technological and economic landscape.
Scheduled to begin operations by 2026, the plant will produce 50,000 wafers monthly, catering to industries such as automotive, artificial intelligence, data storage, and wireless communications. With transistor sizes ranging from 110nm to 28nm, the facility will leverage AI-enabled systems and advanced automation tools to deliver cutting-edge microchips.
Gujarat stands out as the perfect location due to its proactive policies, including a 40% capital expenditure subsidy and land incentives, along with robust infrastructure and resources like ultrapure water and energy. Its connectivity to major cities such as Ahmedabad, Surat, and Baroda, supported by ongoing infrastructure projects like a new airport and expressway, further enhances its appeal.
The project will generate over 20,000 skilled jobs, bolstering Gujarat’s economy and reinforcing India’s position in global manufacturing. Additionally, Tata Electronics’ Rs 270 billion semiconductor assembly and testing plant in Jagiroad, Assam, will create 27,000 more jobs, further strengthening the country’s semiconductor ecosystem.
With investments from global players like Micron Technology and the Murugappa Group in nearby Sanand, Gujarat is emerging as India’s semiconductor hub. The construction of the Dholera facility is a significant stride in reducing reliance on foreign chip manufacturers, enhancing domestic manufacturing capabilities, and positioning India as a global technology leader. This milestone project marks a new chapter in India’s journey toward economic growth, job creation, and technological self-reliance.
