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In a major step towards building India’s semiconductor ecosystem, Prime Minister Narendra Modi inaugurated the foundation of Tata Electronics’ semiconductor fabrication plant in the Dholera Special Investment Region (SIR). The project, being developed in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan, has been hailed by the Prime Minister as a “historic milestone for India’s tech future.”

The facility, with an investment of approximately ₹91,000 crore, will manufacture 28-nanometre chips and aims to start production by December 2026. Once operational, it will mark the rollout of India’s first domestically produced chips.

According to Union IT Minister Ashwini Vaishnaw, the fab will have a production capacity of around 50,000 wafer starts per month and will serve sectors such as automotive, telecom, renewable energy, and consumer electronics. He added that the initiative reflects India’s strong commitment to becoming a global semiconductor hub under the “Make in India” vision.

The government has approved the project under its Semicon India Programme, offering up to 50% capital support and infrastructure assistance. Dholera was chosen for its world-class connectivity, reliable power and water supply, and integrated plug-and-play industrial ecosystem.

The fab is expected to generate over 20,000 direct and indirect jobs while boosting domestic innovation, supply-chain resilience, and advanced-manufacturing capabilities. Experts view the Tata-PSMC fab as a foundation for India’s long-term technological self-reliance and global competitiveness in chip manufacturing.

“This fab is not just a factory; it is the foundation of a stronger and more self-reliant India,” said Prime Minister Modi, highlighting the role of skilled Indian engineers in shaping the nation’s semiconductor future.