India’s first AI-enabled semiconductor fabrication plant has officially started construction in Dholera, Gujarat, marking a significant milestone for the nation’s semiconductor industry.
This Rs 910 billion project, led by Tata Electronics in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), aims to make India a key player in the global semiconductor supply chain. Highlights • Location and investment: The fab will be situated in Dholera, a key industrial zone within the Delhi-Mumbai Industrial Corridor, with an investment of Rs 910 billion.
The facility is expected to produce 50,000 wafers per month and begin operations by 2026. • Technology and capabilities: The plant will feature AI-enabled systems and next-gen factory automation tools, focusing on microchip production for sectors like automotive, AI, data storage, and wireless communications. It will manufacture semiconductors with transistor sizes from 110nm to 28nm. • Job creation: The project is set to create over 20,000 skilled jobs, contributing significantly to Gujarat’s economic growth.
This collaboration is expected to strengthen the semiconductor manufacturing ecosystem in India and drive innovation across multiple technology nodes.
Dholera’s proximity to major cities like Ahmedabad, Surat, and Baroda enhances its connectivity, making it an attractive destination for semiconductor companies. Ongoing infrastructure projects, such as a new airport, expressway, and semi-high-speed rail line, will further drive economic growth in the region.
