India’s First AI-Enabled Semiconductor Fab Breaks Ground in Dholera, Gujarat
Construction has officially begun on India’s first AI-enabled semiconductor fabrication plant in Dholera, Gujarat, a landmark step in the nation’s push to become a global semiconductor powerhouse. The ₹91,000 crore project is spearheaded by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).
Project Highlights
- Scale & Output: Located in the Delhi–Mumbai Industrial Corridor’s Dholera Special Investment Region, the fab will produce 50,000 wafers per month and is set to start operations in 2026.
- Advanced Technology: Equipped with AI-driven systems and next-gen automation, the facility will manufacture chips ranging from 110nm to 28nm, catering to automotive, AI, data storage, and wireless communication industries.
- Job Creation: Expected to generate 20,000+ skilled jobs, giving a major boost to Gujarat’s economy.
Why Dholera? Strategic Advantages
- Policy Support: Up to 40% capital expenditure subsidy and land incentives for semiconductor projects.
- Robust Infrastructure: Ready access to land, power, and water, along with desalination plants for ultrapure water supply.
- Connectivity: Close to Ahmedabad, Surat, and Baroda, with upcoming airport, expressway, and semi-high-speed rail links.
Part of a Larger Semiconductor Push
Alongside the Dholera fab, Tata Electronics is also investing ₹27,000 crore in a semiconductor assembly and testing plant in Jagiroad, Assam, expected to create 27,000 jobs. Global majors like Micron Technology and the Murugappa Group are also setting up facilities in Sanand, cementing Gujarat’s status as India’s semiconductor hub.
The Dholera project is poised to reshape the global semiconductor supply chain, reduce India’s dependency on foreign chipmakers, and position the country as a credible alternative to established manufacturing hubs.
