Dholera: As a step towards implementing over ₹91,526 crore semiconductor project, India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) today signed a Fiscal Support Agreement (FSA) for India’s first commercial semiconductor fab in Dholera, Gujarat, with a capacity of 50,000 Wafer Starts Per Month (WSPM – The measurement of the output of a semiconductor wafer plant). Gujarat Chief Minister Bhupendra Patel was present on the occasion.
“This breakthrough agreement represents a decisive step forward in strengthening India’s technological self-reliance under the modified programme for semiconductor & display manufacturing ecosystem in India,” the Ministry of Electronics & IT, stated.
Tata Electronics’ semiconductor fab in the Dholera (SIR) commands a total investment of over ₹91,000 crore with a capacity of 50,000 WSPM.
“This is a historic milestone for India and Tata Electronics in its journey of establishing a semiconductor manufacturing industry in India…With construction being undertaken with a great sense of urgency, Tata Electronics is deeply committed to building India’s first AI-enabled Fab in Dholera,” Dr Randhir Thakur, CEO and MD, Tata Electronics, said.
The Government of India, through the India Semiconductor Mission, has committed 50% fiscal support on a pari-passu basis for eligible project costs—demonstrating unwavering national commitment to building a world-class semiconductor ecosystem within Indian borders.
Sushil Pal, CEO of the India Semiconductor Mission, emphasized that “the Government of India is committed to the timely disbursement of fiscal support for the execution of this project. This initiative underscores India’s ambitions in indigenous semiconductor manufacturing. We are confident that Tata Electronics will play a pivotal role in strengthening the electronics value chain and make a significant contribution to India’s overarching goals in this sector.”
Set to generate over 20,000 direct and indirect skilled jobs, this project brings Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) expertise to India, creating a powerful technological alliance. The facility will address critical global semiconductor markets in automotive, computing, communications, and artificial intelligence sectors—transforming India from a technology consumer into a global manufacturing powerhouse.
By advancing semiconductor manufacturing and creating employment opportunities, this project will drive technological innovation and deliver substantial contributions to India’s economic growth. The Ministry claimed that the project establishes India as a reliable partner in building resilient, efficient, and sustainable global semiconductor supply chains.
The strategic fiscal support from the Government of India will accelerate the transformative expansion of the country’s semiconductor industry, positioning India as a key player on the global semiconductor stage and launching a new era of technological self-reliance for the nation, it added.
– global bihari bureau
