Tata Electronics is making significant strides in the semiconductor sector by constructing two new fabrication plants, or fabs, in Dholera, Gujarat. These facilities are part of the company’s larger plan to develop a comprehensive chip manufacturing ecosystem that meets the growing global demand for semiconductors. The expansion aims to position Tata Electronics as a prominent player in the international semiconductor market.
First fab set to launch in 2026
The construction of the first fab is already in progress at the Dholera Special Investment Region, following the groundbreaking ceremony in March 2023. This plant will specialise in producing chips for power management, display drivers, microcontrollers, and high-performance computing applications. These semiconductors will be crucial for industries such as automotive, data storage, wireless communications, and artificial intelligence. At full capacity, the fab is expected to produce 50,000 wafers per month.
This Rs 91,000 crore project is being developed in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). The first phase is expected to begin production by 2026, catering to both domestic and international demand.
Plans for future fabs
Tata Electronics has plans to construct two more fabs over the next five to seven years. These fabs will likely mirror the scale of the first facility, although details about partnerships and technology specifications are yet to be confirmed. The company’s expansion strategy will adapt to the evolving requirements of the global semiconductor industry.
Strengthening local ecosystems
In addition to chip production, Tata Electronics is actively building a local supply chain by collaborating with various partners and suppliers. A residential facility is also being developed to house 4,000-5,000 workers who will be employed at the Dholera fab.
Assam expansion
Alongside the Gujarat expansion, Tata Electronics is advancing its semiconductor packaging and testing facility in Jagiroad, Assam, which is set to begin high-volume production by mid-2025. This facility will focus on wire bond, flip chip, and integrated systems packaging, with a daily output of 48 million chips.
This major expansion effort positions Tata Electronics as a key player in India’s growing semiconductor manufacturing ecosystem.
