The India Semiconductor Mission (ISM), Tata Electronics (TEPL), and Tata Semiconductor Manufacturing (TSMPL) have signed a Fiscal Support Agreement (FSA) to build India’s first commercial semiconductor fabrication plant in Dholera, Gujarat.
Key Details of the Tata Semiconductor Fab
- Investment: ₹91,000 crore
- Production Capacity: 50,000 wafers per month (WSPM)
- Government Support: 50% fiscal support from ISM on a pari-passu basis for eligible project costs
- Job Creation: Over 20,000 direct and indirect skilled jobs
Strategic Importance
- Reduces dependency on foreign chipmakers by boosting domestic semiconductor production.
- Strengthens India’s semiconductor ecosystem, aligning with the country’s ambition to become a global chip manufacturing hub.
- Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) is collaborating with Tata Electronics to integrate global expertise into India’s chip industry.
- The fab will support automotive, computing, communication, and AI sectors, addressing the rising demand for semiconductors globally.
