The India Semiconductor Mission (ISM) and TATA Group companies, including TATA Electronics and TATA Semiconductor Manufacturing, have signed a fiscal support agreement to set up Indias first commercial semiconductor fabrication unit in Dholera, Gujarat. This marks a crucial milestone in Indias pursuit of self-reliant semiconductor production. With an investment of over ₹91,000 crore, TATA Electronics plans to establish a facility capable of producing 50,000 wafer starts per month (WSPM). To support this initiative, the Indian government, through ISM, will provide 50% fiscal assistance for eligible project costs on a pari-passu basis, underscoring its commitment to strengthening the domestic semiconductor industry.

To ensure the successful development of the semiconductor fab in Gujarat, TATA Electronics has partnered with leading global technology firms. Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) is collaborating with TATA Electronics to build India’s first AI-enabled semiconductor fabrication facility, offering expertise in design, construction, and licensing a broad portfolio of semiconductor technologies. Another key collaboration is with Himax Technologies, focusing on advancing display semiconductors and ultra-low-power AI sensing products to enhance India’s chip design and manufacturing capabilities.

Further strengthening its semiconductor infrastructure, TATA Electronics has signed an agreement with Tokyo Electron Limited (TEL) to develop advanced semiconductor manufacturing equipment, contributing to Indias growing production capacity. Additionally, a partnership with Analog Devices (ADI) aims to explore semiconductor manufacturing opportunities, particularly in electric vehicles and network infrastructure, integrating ADI’s semiconductor solutions across various applications within the TATA Group. These strategic alliances play a crucial role in building a resilient semiconductor ecosystem in India, ensuring supply chain stability, and meeting the increasing demand for advanced semiconductor products both domestically and globally.

The semiconductor fabrication unit in Gujarat is expected to create over 20,000 direct and indirect skilled jobs, significantly contributing to India’s economy. Serving global markets in automotive, computing, communications, and artificial intelligence, the facility will bolster India’s position in the global semiconductor industry. This initiative aligns with India’s vision of evolving from a technology consumer to a global leader in semiconductor manufacturing. As one of five semiconductor projects approved under the India Semiconductor Mission, this initiative is a key step toward realizing Indias ambitions in the sector. The signing of the fiscal support agreement reinforces the collaboration between TATA Electronics, the Ministry of Electronics and Information Technology (MeitY), and ISM, pushing India closer to its goal of producing Chips for Viksit Bharat. By strengthening Indias electronics value chain, this project is set to play a vital role in the country’s long-term aspirations for semiconductor self-sufficiency.

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