Advancing India’s tech self-reliance vision, Tata’s ₹910 billion Dholera fab, set to be India’s first and already a beneficiary of government aid, enters a fiscal support deal of 50 per cent with the India Semiconductor Mission.
The India Semiconductor Mission (ISM) has signed a Fiscal Support Agreement (FSA) with Tata Electronics Private Limited (TEPL), Tata Semiconductor Manufacturing Private Limited (TSMPL) for India’s first semiconductor fab, set to be built in Dholera, Gujarat.
The agreement was formalised last week in the presence of Gujarat’s Chief Minister Bhupendra Patel at Gujarat’s semiConnect event, while Tata announced the launch of a display manufacturing facility in the same location.
The project, with a total investment of over ₹910 billion, is already a beneficiary of ISM. The Indian government, through ISM, has pledged 50 per cent fiscal support for eligible project costs, aligning with the goal of a self-reliant, global semiconductor ecosystem within the country.
This fabrication facility is expected to generate more than 20,000 direct and indirect jobs, with an anticipated capacity of producing 50,000 wafers per month.
Furthermore, the partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) in this project will bring more expertise for addressing global semiconductor demands in sectors such as automotive, computing, communications, and artificial intelligence.
“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,” said Sushil Pal, CEO of the India Semiconductor Mission, expressing enthusiasm about the fab at the signing event.
Dr Randhir Thakur, CEO and MD of Tata Electronics, called the agreement a historic step in realising the Prime Minister’s vision of “Chips for Viksit Bharat” and emphasised the urgency with which construction is progressing.
“We are grateful to the MeitY and ISM leadership for their unwavering support and resolve in not only defining but operationalising a globally leading subsidy framework through this FSA. 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,” he said.
