First Fab in Dholera: Tata Group to Revolutionize India’s Tech Sector by 2030

Tata Group is set to revolutionize India’s tech sector with the establishment of the nation’s first Fab in Dholera, Gujarat. This state-of-the-art facility, built in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), will address global semiconductor markets, particularly in automotive, computing, communications, and artificial intelligence.

I. Partnership with Powerchip Semiconductor Manufacturing Corporation

• Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) will provide technology and execution support for this greenfield facility.
• PSMC, one of Taiwan’s leading pure-play foundry companies with capabilities across logic and memory technologies, will offer access to a broad technology portfolio in leading-edge and mature nodes.

II.  Investment and Job Creation

• In a significant step towards creating an indigenous semiconductor ecosystem in India, the Government of India has approved Tata Electronics’ proposal to build a mega semiconductor fabrication facility in Dholera.
• The fab construction will commence this year with a total investment of up to INR 91,000 crores (~US$11bn). This initiative is expected to generate over 20,000 direct and indirect skilled jobs in the region.

III. Advanced Manufacturing Capabilities

• Tata Electronics, a wholly-owned subsidiary of Tata Sons Pvt. Ltd., in partnership with PSMC, will build India’s first AI-enabled state-of-the-art Fab.
• This facility will have the capacity to manufacture up to 50,000 wafers per month and will include next-generation factory automation capabilities.

IV. Significance for India’s Semiconductor Industry

• N Chandrasekaran, Chairman of Tata Sons, announced Tata Group’s decision to build the semiconductor Fab in Dholera during the 20th Vibrant Gujarat Summit in January 2024.
• This landmark event underscored Tata Group’s commitment to pioneering technological advancements in India. Chandrasekaran emphasized the transformative impact of AI-led digitization on various industries, highlighting that semiconductors are poised to become the most critical building blocks in this digital era.
• He elaborated that the global semiconductor industry is expected to experience exponential growth, reaching an estimated US$1 trillion by 2030.
• In tandem, the demand for semiconductors within India is projected to exceed US$110bn, driven by the nation’s burgeoning tech sector and increasing digitalization.
• India’s strategic entry into semiconductor manufacturing, facilitated by Tata Group’s initiative, will significantly mitigate risks in global supply chains.
• This move will enhance the resilience and reliability of semiconductor supplies worldwide, reducing dependence on existing hubs. Furthermore, it will position India as a formidable player in the global semiconductor industry, leveraging its growing market and technological capabilities to attract international investments and collaborations.
• Chandrasekaran expressed confidence that this venture would not only bolster India’s technological infrastructure but also create numerous high-tech employment opportunities, fostering economic growth and innovation.
• He affirmed that Tata Group’s legacy of pioneering various sectors in the country will be further enriched by their foray into semiconductor fabrication, marking a significant milestone in India’s journey towards becoming a global technology leader.

V. Statements from Tata Group and PSMC Leadership

• Dr. Randhir Thakur, CEO & MD of Tata Electronics, emphasized the strategic importance of this initiative, marking a new era for India in the global semiconductor ecosystem. He expressed confidence in the partnership with PSMC, which will enhance Tata Electronics’ ability to meet global customer requirements and support domestic demand.
• Dr. Frank Hong, Chairman of PSMC, expressed excitement about the partnership with Tata Group, noting that India’s unique position with large domestic demand and global supply chain resilience makes it an opportune time to enter semiconductor manufacturing. He highlighted the potential of this partnership to redefine global semiconductor manufacturing.
• For more information, visit Tata Group’s official website

VI. Conclusion

• This new initiative from Tata Electronics will bring cutting-edge semiconductor technologies, advanced skill sets, and a network of suppliers and ecosystem partners to India. The establishment of this Fab will allow India to address the growing chip demand of domestic and global customers across various markets. Tata Group’s multi-fab vision for Dholera is projected to create over 100,000 skilled jobs and position India as a key supply chain partner in the global semiconductor industry.
• By building this state-of-the-art facility in Dholera, Tata Group is not only pioneering a new industry in India but also contributing significantly to the global semiconductor supply chain. This strategic move will bolster India’s technological capabilities and economic growth.