The India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a Fiscal Support Agreement (FSA) to establish the country’s first commercial semiconductor fabrication unit in Dholera, Gujarat.
- The Tata Electronics semiconductor fab will see an investment of over ₹91,000 crore, with a capacity of producing 50,000 wafers per month (WSPM).
- The Government of India, through ISM, has committed 50% fiscal support on a pari-passu basis for eligible project costs.
- This move underscores India’s commitment to establishing a robust semiconductor ecosystem and reducing dependency on foreign chip manufacturing.
- The project is expected to generate more than 20,000 direct and indirect skilled jobs.
- In collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), Tata Electronics will integrate global expertise into India’s semiconductor industry.
- The facility will cater to the growing demands of global markets in automotive, computing, communications, and artificial intelligence (AI) sectors.
