Gujarat is rapidly establishing itself as India’s premier semiconductor hub, thanks to a combination of policy incentives, abundant resources, and a thriving chemical industry. At the heart of this transformation is Dholera, which is an expansive urban development spanning 920 sq. km, twice the area of Mumbai.
Strategically located along the Delhi-Mumbai Industrial Corridor (DMIC), Dholera is a top contender to house India’s first semiconductor fabrication plant (fab), spearheaded by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).
Gujarat is rapidly becoming India’s leading semiconductor centre, with Dholera drawing significant investments from industry giants such as Tata and Micron.
The construction of this advanced facility is already underway and is expected to be completed by 2026. With an investment of Rs 91,000 crore, this AI-enabled fab will have the capacity to produce 50,000 wafers per month. This marks a major milestone for India as it seeks to reduce its dependence on imported semiconductors.
Gujarat’s rapid rise as India’s semiconductor hub is largely due to a strong policy framework. In 2021, the Indian Government announced the India Semiconductor
Mission (ISM), and Gujarat was quick to follow suit with its own Semiconductor Policy in 2022
Gujarat also stands out due to its vast availability of land and lower prices compared to other regions, making it an attractive destination for large-scale projects.
As Gujarat cements its position as India’s semiconductor hub, comparisons with Taiwan’s Hsinchu City, home to some of the world’s largest semiconductor companies, are becoming more frequent. Like Hsinchu, Dholera has the potential to attract global players and become a centre for semiconductor innovation, supported by infrastructure investments like the Ahmedabad-Dholera Expressway and the upcoming Dholera Airport.
