Tata Chip Fab Dholera: ₹91,000 Cr Semiconductor Plant to Create 20,000 Jobs by 2026
India’s ₹91,000 crore semiconductor mission progressed on Jan 2, 2025, as Tata Electronics broke ground on its first AI-integrated fab in Dholera (PIN 382455), Gujarat. “This is India’s leap into advanced chip-making,” said MeitY Secretary Alkesh Kumar Sharma.
Breaking Update – Jan 2, 2025
Tata Electronics has launched India’s first advanced semiconductor fabrication facility in Dholera SIR, Gujarat. Partnering with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), the plant will manufacture 50,000 wafers per month and begin operations by 2026. Tata Group Chairman N. Chandrasekaran stated, “We’re proud to shape India’s digital future through global-standard chip technology.”
The facility is located in RERA-notified industrial zones under the Delhi-Mumbai Industrial Corridor. It’s backed by the India Semiconductor Mission (ISM) and MeitY, with approvals in place under the Gujarat Semiconductor Policy 2022–27.
Why This Matters in 2025
India’s global share in chip consumption is expected to reach $110 billion by 2030. This Dholera project is pivotal in reducing import reliance and boosting local supply chains. The ₹91,000 Cr investment will create 20,000+ skilled and indirect jobs, while integrating India into the $1 trillion global semiconductor industry.
Policy Impact (PLI / Budget / Subsidies)
The project benefits from:
- 50% fiscal support under the Semicon India Programme (Source: MeitY PIB release)
- 40% capital subsidy from Gujarat State (Source: DST Gujarat)
- 75% land subsidy on first 200 acres
- 100% stamp duty exemption, power tariff rebates
More details: https://pib.gov.in
Regional Economic Shift
Dholera’s positioning in the DMIC corridor enables efficient logistics, access to desalinated water, and 5G-ready smart infrastructure. The Gujarat government is developing 1,500 residential units and reserving 80 acres for Tata employees. Companies like RSC Group are launching RERA-approved smart housing in Sectors 6, 8, and 9.
Global Standing Update
India’s Dholera fab positions the country as a reliable alternative to Taiwan and China in the global chip chain. According to Dr. Frank Hong of PSMC, “This Indo-Taiwan partnership is a step toward global supply chain resilience.”
India also eyes chip exports by 2028, joining the US, Taiwan, and South Korea in key node manufacturing. The project is also aligned with Quad nations’ joint tech cooperation framework.
Verified Project Timeline
Milestone | Date | Status |
Announcement | Jan 10, 2024 | Confirmed |
MoU with PSMC | Dec 2024 | Signed |
Groundbreaking Ceremony | Jan 2, 2025 | Completed |
First Equipment Arrival | Sep 2025 | In Progress |
Commissioning Phase I | Dec 2025 | Scheduled |
Full-scale Operation | Q2 2026 | Projected |
Data Table
Project Name | Location | Investment (₹ Cr) | Jobs | Timeline |
Tata Chip Fab | Dholera, GJ | 91,000 | 20,000 | 2025–2026 |
Micron ATMP Plant | Sanand, GJ | 22,500 | 5,000 | 2023–2025 |
Foxconn Foundry (TBC) | TBD | 76,000 | 22,000 | 2025–2029 |
Tata Chip Fab Dholera FAQs
₹91,000 Cr is being invested in Tata’s chip fab in Gujarat under MeitY’s Semicon India (Source: MeitY)
Tata’s facility will create over 20,000 direct and indirect jobs in Gujarat by 2026 (Source: Tata Electronics)
Semiconductors from 110nm to 28nm nodes will be produced for AI, automotive, and telecom use (Source: PSMC)
The fab will begin commercial operations in Q2 2026, with first production by Dec 2025 (Source: Gujarat Government)
Gujarat offers 40% capex support and 100% stamp duty exemption under its 2022–27 policy (Source: DST Gujarat)
