Tata Electronics has teamed up with Merck in a multi-billion-dollar push to build India’s first semiconductor Fab in Gujarat, strengthening supply chains and advancing the India Semiconductor Mission.
Tata Electronics Private Limited and Merck signed a Memorandum of Understanding (MoU) on September 2, 2025, to enhance India’s semiconductor manufacturing ecosystem. The agreement focuses on semiconductor materials, fabrication infrastructure, and the distribution of speciality chemicals and gases, directly supporting the India Semiconductor Mission.
As part of the collaboration, Merck will provide Tata Electronics with high-purity electronic materials, advanced gas and chemical delivery systems, turnkey fab infrastructure services, and AI-powered Material Intelligence solutions for Tata’s Fab at Dholera in Gujarat. Merck will also share best practices in safety and production excellence, while enabling access to Athinia, its secure data analytics platform designed to foster industry collaboration.
Tata Electronics is investing ₹91,000 crores ($11 billion) in building India’s first semiconductor Fab in Dholera, which will produce chips for automotive, mobile devices, artificial intelligence, and other critical applications. This move aims to secure the local supply chain while serving international clients.
The partnership also includes plans for localised warehousing, raw material supply chain development, talent cultivation, and establishing industry standards across India.
Dr Randhir Thakur, CEO and MD of Tata Electronics, said, “The partnership with Merck brings world-class expertise in advanced materials and a shared commitment to safety and manufacturing excellence. By leveraging Merck’s experience, we aim to build a resilient ecosystem, accelerate our Fab’s execution in Dholera, Gujarat, and set new benchmarks in quality, safety, and innovation for the global semiconductor industry.”
Dr Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics, added, “India’s semiconductor journey is gaining momentum globally, and Merck is proud to be a part of it. The collaboration with Tata Electronics aligns with Merck’s strategy to be a trusted partner in key growth markets, focusing on safety, precision, and innovation to build a resilient materials ecosystem supporting India’s semiconductor ambitions.”
