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Tata Dholera Fab: Every Stage of India’s First Commercial Chip Plant

📅 Updated 5 October 2026🏭 2009–2028
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In short

Tata's Dholera fab, India's first commercial chip plant: ₹91,526 crore, PSMC and ASML, 50,000 wafers a month, and commercial output now due mid-2028.

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The Tata Dholera fab in Gujarat is the plant meant to give India what it has tried and failed to build since 2011: a commercial factory that makes chips on silicon wafers, not just one that packages them. It is a ₹91,526 crore, 300 mm fab built with Taiwan’s PSMC, designed for 50,000 wafers a month on 28 to 110 nm processes. This page follows it from the empty Bhal plain to SEMICON India 2026, including the parts the launch headlines left out: the start date has moved from December 2026 to mid-2028, and production will begin at 55 and 90 nm, with 28 nm later.

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💡 Short Answer

Tata Electronics is building India’s first commercial semiconductor fab at Dholera, Gujarat: a ₹91,526 crore, 300 mm plant with technology from Taiwan’s PSMC and lithography support from ASML, designed for 50,000 wafer starts a month on 28–110 nm processes. The Cabinet approved it on 29 February 2024 with 50% central support. Production will start at 55 and 90 nm, and the government now expects commercial operations in mid-2028, not December 2026 as first promised.

⚡ Tata Dholera Fab: Quick Facts
Project cost₹91,526 crore (~$11 billion)
Capacity50,000 wafer starts/month, 300 mm
Nodes28–110 nm; starts at 55 and 90 nm
PartnersPSMC (technology), ASML (lithography)
Approved29 Feb 2024, 50% central support
Commercial outputMid-2028 (was Dec 2026)
⚡ Quick Answers — AI Overview Ready

Tata Dholera Fab: Key Questions

When will the Dholera fab start production?
The government now expects commercial operations in mid-2028. IT minister Ashwini Vaishnaw gave that date in July 2026, after saying in March 2024 that the first chip would come out in December 2026. The cleanroom and tool installation are expected during 2027, with trial wafers before commercial output.
Is Dholera India’s first chip plant?
It is India’s first commercial front-end fab, where chips are made on silicon wafers. India already has assembly and test plants, such as Micron’s at Sanand, that package chips made abroad, and a small government fab at Mohali. Dholera is the first large-scale commercial wafer fab.
What chips will Dholera make?
Mature-node chips: power-management ICs, display drivers, microcontrollers and some computing logic, for cars, phones, industrial equipment and communications. PSMC’s licence covers 28 to 110 nm. Output will begin at 55 and 90 nm, with 28 nm added later.
How much is Tata investing at Dholera?
The project is valued at ₹91,526 crore, about $11 billion, under the March 2025 Fiscal Support Agreement. The Centre pays 50% of eligible costs in step with Tata’s spending, Gujarat adds state incentives, and Tata raised about $735 million in bank loans in February 2026.
📚 Key Takeaways

The Dholera Fab in Ten Points

  • A fab, not a packaging plant: Dholera makes the circuits on the wafer; India’s other new chip plants package and test.
  • Approved 29 February 2024: ₹91,000 crore, 50,000 wafers a month, 28–110 nm.
  • Fiscal Support Agreement, 5 March 2025: ₹91,526 crore project, 50% central support.
  • Partners: PSMC licenses the processes (September 2024); ASML backs lithography (May 2026).
  • The date moved: first chip promised for December 2026; commercial operations now mid-2028.
  • The node moved: production starts at 55 and 90 nm, with 28 nm later.
  • Soft ground: foundations were redesigned in 2025 for Dholera’s saline, silty soil.
  • Third attempt: fabs backed in 2013–14 and the Vedanta–Foxconn plan of 2022 all fell through.
  • The ecosystem is the second project: Merck, Sumitomo, Kelington, Sojitz, a 363-acre vendor park, ISM 2.0.
  • The real test is yield and customers, not the building. No volume customer has been announced yet.

What a Fab Is, and Why India Did Not Have One

The difference between making chips and packaging them.

A chip starts as a polished disc of pure silicon. In a fab, that wafer goes through hundreds of steps over two to three months: thin films are deposited, patterns are printed by lithography, material is etched away, ions are implanted, metal wiring is laid down layer by layer. At the end, one 300 mm wafer carries hundreds or thousands of identical dies. All of it happens in a cleanroom far cleaner than an operating theatre, fed by ultra-pure water, specialty gases and stable power.

Those wafers then go to an OSAT (outsourced semiconductor assembly and test) or ATMP plant, which cuts them into dies, packages each one and tests it. That is the stage India has added fastest since 2023: Micron at Sanand, Kaynes and CG Semi in Gujarat, Tata at Jagiroad in Assam. Assembly plants matter, but they need wafers from somewhere else. A fab is what lets a country make the chip itself, and it costs roughly ten times as much.

India’s chip story before 2024 was largely design: tens of thousands of engineers at global chip companies in Bengaluru, Hyderabad and Noida designing chips that were fabricated in Taiwan, Korea or the United States. Dholera is the attempt to add the missing industrial layer.

🏭 Fab (front end): Dholera

  • Deposition, lithography, etching
  • Ion implantation, metallisation
  • Hundreds of steps per wafer
  • Output: finished wafers
  • Cost: ~₹91,500 crore

🧩 OSAT/ATMP (back end): Sanand, Jagiroad

  • Wafer dicing
  • Die attach and wire bonding
  • Packaging
  • Final test
  • Cost: a few thousand to ~₹27,000 crore
A 300 mm (12-inch) silicon wafer patterned with chips
A 300 mm (12-inch) silicon wafer patterned with chips, the wafer size Dholera is built for. Wikimedia Commons, CC BY-SA 3.0.
🏭 Interactive: Dholera Fab Tracker

A fab is built in stages. Pick one to see where Dholera stands, what the last public evidence was, and what to check next.

Status as of 5 October 2026, from government and company statements and named reports.

Choose a stage above

–Status
–Last evidence
–Next check

    The Date That Moved: December 2026 to Mid-2028

    Every public target for Dholera’s first output, in the order it was stated.

    When will Dholera make chips? The target, as stated over time2026202720282029Mar 2024Vaishnaw, foundation stoneFirst chip: Dec 2026Sep 2025Mint, unnamed executivesFirst chip: mid-2027Nov 2025Tata, soil redesign reportsProduction: Dec 2026Mar 2026Vaishnaw, Kaynes openingFirst fab: 2028Jul 2026Vaishnaw to ReutersCommercial: mid-2028
    Sources: Vaishnaw remarks reported 14 March 2024 and 31 March 2026; Mint via DigiTimes (16 Sep 2025); Electronics For You (28 Nov 2025); Reuters via TrendForce (July 2026). Targets are as stated, not forecasts. Scroll sideways on small screens.

    When the foundation stone was laid in March 2024, Ashwini Vaishnaw said the first chip from Dholera would come out in December 2026, which would have been about 33 months from groundbreaking to silicon. That is fast even for experienced fab builders in Taiwan, and Dholera was a greenfield site on soft ground.

    The date held in public until 2025. A Mint report in September 2025 said Tata expected its cleanroom to be ready only by early 2027, putting a first chip around mid-2027 and warning of rare-earth shortages. In March 2026 Vaishnaw said the first fab would be ready in 2028, and in July 2026 he told Reuters that commercial operations were expected in mid-2028.

    Two things are worth separating. A first wafer through the line is a technical milestone; commercial production means yields and customer qualification good enough to sell. Many timelines blur the two. Even on the new date, Dholera would go from Cabinet approval to commercial output in a little over four years, close to what new fabs take elsewhere.

    Tata Dholera Fab: The Full Timeline, 2009–2026

    Newest first. Tags mark milestones reached, work in progress, dates that moved, and plans that did not happen.

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    4 Oct
    2026

    A 363-acre vendor park for 450 suppliers In progress

    With Ascendas Firstspaceplug-and-play sheds, power, water, roads

    Tata Electronics is reported to be building a 363-acre plug-and-play supplier park beside the fab with Singapore’s Ascendas Firstspace, for about 450 domestic and international suppliers. The aim is to keep chemicals, gases, spare parts and maintenance crews minutes from the cleanroom, because a fab that waits days for a part loses wafers.

    17–19 Sep
    2026

    SEMICON India: ‘aligned with government schedules’ In progress

    450+ partners at Dholera16 agreements planned300 graduates training at PSMC

    At SEMICON India in New Delhi, Tata Electronics said construction at Dholera and its assembly plant at Jagiroad, Assam remained aligned with government schedules, with more than 450 ecosystem partners working on construction, chemicals, equipment and materials. CEO Randhir Thakur said the company planned 16 agreements at the show; those announced included Sumitomo Chemical (photoresists and high-purity chemicals such as hydrogen peroxide, IPA, ammonia water and sulphuric acid), Kelington of Malaysia (critical infrastructure and operational readiness), Enomoto, Sojitz with NRS (a chemical logistics network, signed 18 September) and L&T Semiconductor.

    About 300 recent Indian graduates were training at PSMC’s fabs in Taiwan.

    Start at 90 nm, commercial output mid-2028 Date moved

    Bloomberg reportTata: ‘55 nm and 90 nm, followed by 28 nm’Vaishnaw: mid-2028

    Bloomberg reported that Dholera would begin production mainly on the 90 nm process rather than 28 nm, the node the Tata Sons annual report for 2024–25 had highlighted. A Tata Electronics spokesperson said the plan had always been to start with 55 nm and 90 nm and then add 28 nm, which would remain a key part of its offering; PSMC said gradual introduction starting with mature nodes was normal.

    IT minister Ashwini Vaishnaw told Reuters the fab was now expected to start commercial operations in mid-2028. In March 2024 he had said the first chip would come out in December 2026.

    ISM 2.0: ₹1.27 lakh crore for the next phase Milestone

    Six yearsequipment, materials, gases, design, talent

    The Union Cabinet approves the second phase of the India Semiconductor Mission with an outlay of about ₹1.27 lakh crore over six years. Where the 2021 programme paid mainly for fabs and assembly plants, ISM 2.0 also covers semiconductor equipment, chemicals, gases, materials, chip design, R&D and talent: the supply chain Dholera needs around it.

    16 May
    2026

    ASML signs on Milestone

    MoU in the Netherlandswitnessed by PM Modilithography, skills, R&D

    Tata Electronics and ASML, the Dutch company that makes the lithography machines every modern fab depends on, sign a memorandum of understanding during Prime Minister Modi’s visit to the Netherlands. ASML will support the establishment and ramp-up of Dholera with its ‘holistic suite’ of lithography tools and solutions, and the two will work on lithography training, R&D infrastructure and supply-chain resilience.

    Why it matters: access to lithography tools and service is a gate no fab can bypass. Dholera’s mature nodes use deep-ultraviolet (DUV) tools, not the extreme-ultraviolet (EUV) machines used for leading-edge chips.

    ASML air-cargo containers used to ship lithography machines
    ASML air-cargo containers used to ship lithography machines, parked in Tainan, Taiwan, May 2025: each tool travels in many such crates and takes months to install and qualify. 4300streetcar, CC BY 4.0, via Wikimedia Commons.
    9 Apr
    2026

    Dholera fab SEZ notified Done

    66.166 hectares₹91,000 crore21,000 jobs

    The Commerce Ministry notifies a special economic zone for Tata Semiconductor Manufacturing at Dholera, announced on 16 April as ‘India’s first chip fabrication plant’. It covers 66.166 hectares, with proposed investment of ₹91,000 crore and employment of 21,000. The zone was possible because SEZ rules were changed on 3 June 2025 to cut the minimum area for semiconductor SEZs from 50 to 10 hectares and allow sales into the domestic market on payment of duty.

    31 Mar
    2026

    ‘First fab by 2028’ Date moved

    Vaishnaw at the Kaynes plant opening in Sanand

    Opening Kaynes Semicon’s assembly plant at Sanand, Vaishnaw says four semiconductor plants will be ready in 2026, two more in 2027, and India’s first fab, at Dholera, in 2028. It is the first official sign that the December 2026 date has gone.

    $735 million of bank loans Done

    HSBC, MUFG, DBS, First Abu Dhabi Bank, ANZrepayable by 2031

    Tata Semiconductor Manufacturing signs about $735 million (around ₹6,835 crore) of loans from five foreign banks through their GIFT City branches, according to filings reported in March 2026. The lenders require Tata to keep majority ownership and the Tata brand. It is a small slice of a ₹91,526 crore project, but the first large external debt for it.

    8 Dec
    2025

    Intel MoU: possible products for Dholera

    Explore making and packaging Intel products in India

    Tata Electronics and Intel sign an MoU to explore manufacturing and packaging Intel products for Indian markets at the Dholera fab and the Assam assembly plant, and to work together on advanced packaging and AI PCs. It is an agreement to explore, not a wafer order, but it is the most prominent potential customer named so far.

    Foundations redesigned for soft soil In progress

    Clay-heavy, saline, silty reclaimed landFugro and Cengers brought in

    Reports say Tata has redesigned the fab’s foundations after studies found Dholera’s reclaimed land was clay-heavy, saline and silty, with low load-bearing capacity. Lithography and metrology tools need floors that barely move. Tata said it had engaged ‘world class experts’, including geotechnical firms Fugro and Cengers, and that the project remained on schedule.

    Wetland and open fields near the Dholera Special Investment Region in Gujarat’s Bhal region
    Wetland and open fields near the Dholera Special Investment Region in Gujarat’s Bhal region, November 2025: flat, low-lying, saline land of the kind that forced Tata to redesign the fab’s foundations. Kevin Kovadia, CC BY-SA 4.0, via Wikimedia Commons.

    Merck pact, and a rare-earth warning

    SEMICON India 2025Mint: first chip mid-2027 at risk

    At SEMICON India 2025 (2–4 September), Tata Electronics signs an MoU with Merck for high-purity materials, gas and chemical delivery systems and fab infrastructure services for Dholera. Days later Mint, citing unnamed executives, reports that Tata expects its cleanroom to be ready by early 2027, with tools and trial production to follow, and that shortages of rare earths and critical elements could delay a first chip targeted for mid-2027.

    5 Mar
    2025

    Fiscal Support Agreement: ₹91,526 crore Milestone

    50% central support, pari-passu50,000 WSPM

    The India Semiconductor Mission, Tata Electronics and Tata Semiconductor Manufacturing sign the Fiscal Support Agreement in the presence of Gujarat Chief Minister Bhupendra Patel. The project is valued at ₹91,526 crore; the Centre commits 50 percent of eligible project costs, released in step with Tata’s own spending. Thakur says construction is being undertaken ‘with a great sense of urgency’.

    26 Sep
    2024

    PSMC definitive agreement Milestone

    Technology licencefab design and construction supportengineering help

    Tata Electronics completes its definitive agreement with Powerchip Semiconductor Manufacturing Corporation. PSMC will license a portfolio of process technologies from 28 nm to 110 nm, provide design and construction support for the greenfield fab, and give engineering support. Tata says its multi-fab vision for Dholera could eventually create more than 1,00,000 skilled jobs.

    PSMC’s new 12-inch fab at Tongluo
    PSMC’s new 12-inch fab at Tongluo, Taiwan, on its opening day, 2 May 2024: the company licensing its process technology to Dholera. Wang Yu Ching / Office of the President (Taiwan), CC BY 2.0, via Wikimedia Commons.
    13 Mar
    2024

    Foundation stone; ‘first chip in December 2026’ Date moved

    Laid virtually by PM Modithree projects worth ~₹1.25 lakh crore

    Prime Minister Modi lays the foundation stones of three semiconductor projects by video link from New Delhi at the ‘India’s Techade: Chips for Viksit Bharat’ event: Tata’s Dholera fab, Tata’s assembly and test plant at Morigaon, Assam, and CG Power’s assembly plant at Sanand, together worth about ₹1.25 lakh crore. Tata calls Dholera an AI-enabled fab. Vaishnaw says the first chip will come out in December 2026, a date that has since moved to 2028.

    29 Feb
    2024

    Cabinet approves India’s first commercial fab Milestone

    ₹91,000 crore50,000 WSPM28, 40, 55, 90, 110 nm

    The Union Cabinet approves Tata Electronics’ proposal, with PSMC as technology partner, for a fab at Dholera with an investment of about ₹91,000 crore and capacity of 50,000 wafer starts a month. The planned nodes are 28 nm for high-performance computing, 40 to 110 nm for power-management chips, display drivers and microcontrollers. It is approved alongside two assembly plants.

    10 Jul
    2023

    Foxconn quits Vedanta’s chip venture Did not happen

    The first Dholera fab plan collapses

    Foxconn says it is withdrawing from its semiconductor joint venture with Vedanta. The venture had signed an MoU with Gujarat on 13 September 2022 for a ₹1.54 lakh crore chip and display complex and chosen Dholera as its site, but had not secured a technology partner able to satisfy the government. Its exit leaves Dholera without a fab project until Tata.

    15 Dec
    2021

    ₹76,000 crore semiconductor programme Milestone

    Up to 50% of project cost for fabsIndia Semiconductor Mission

    After the 2021 chip shortage idles car plants worldwide, the Cabinet approves a ₹76,000 crore programme for semiconductors and displays, offering fiscal support of up to 50 percent of project cost for fabs. The India Semiconductor Mission is set up to run it. This is the scheme that funds Dholera.

    SPECS and PLI for electronics

    Capital subsidy for components, chips and displays

    The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) offers 25 percent capital support for electronic components, semiconductor and display fabrication, and assembly and test, alongside a production-linked incentive for phones. It builds India’s electronics assembly base but attracts no fab.

    2013–2018

    Two fabs approved, none built Did not happen

    Jaiprakash–IBM–Tower (Greater Noida)HSMC–STMicro–Silterra (Gujarat)

    The government gives in-principle approval in September 2013, with letters of intent in 2014, to two consortia, each planning about 40,000 wafer starts a month, with nodes going down to 28 nm. One is led by Jaiprakash Associates with IBM and Tower Semiconductor; the other by HSMC Technologies with STMicroelectronics and Silterra, at Prantij in Gujarat. Jaiprakash pulls out, and HSMC’s letter of intent is cancelled in April 2018. Neither raised the money or locked in customers.

    2011–2012

    The ambition is written down

    Empowered committee on fabsNational Policy on Electronics 2012

    The government sets up an empowered committee in 2011 to find technology partners and investors for wafer fabs. The National Policy on Electronics, 2012 names fabs as a strategic goal. The words are in place twelve years before a fab is approved.

    Dholera Special Investment Region

    Gujarat Special Investment Region Act, 2009~920 sq km

    Gujarat designates Dholera, a flat, sparsely populated stretch of the Bhal region near the Gulf of Khambhat, as a Special Investment Region under its new SIR Act, and later as a node of the Delhi–Mumbai Industrial Corridor. For years it is mainly roads and plots. The fab makes it the centre of India’s chip plan.

    Aerial view of Dholera International Airport under construction
    Aerial view of Dholera International Airport under construction, 30 August 2025: the airport is part of the infrastructure being built around the fab site. Sarvajanik Puralekh, CC BY-SA 4.0, via Wikimedia Commons.
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    90 nm Before 28 nm: What the Node Change Means

    Not cutting-edge, and not meant to be.

    In July 2026 Bloomberg reported that Dholera would start mainly at 90 nm, a process first used for high-volume chips about two decades ago, rather than the 28 nm highlighted in Tata Sons’ 2024–25 annual report. Tata said this was always the plan: start with 55 and 90 nm, then add 28 nm. PSMC said bringing up mature nodes first was normal.

    Both things can be true. Starting with simpler processes lets a new team learn to run the fab, tune yields and qualify customers before attempting the harder node. And mature-node chips are not niche: power-management ICs, microcontrollers and display drivers ship in enormous volumes, and they are what ran short in 2021, idling car plants around the world. What 90 nm is not is a route into AI accelerators or smartphone processors, which need 5 nm or less and are made by TSMC, Samsung and Intel.

    NodeTypical chipsWhere they goWhen at Dholera
    90 nmPower management, analog, microcontrollersCars, industrial gear, chargersFirst, from 2027–28
    55 nmMicrocontrollers, display drivers, mixed-signalPhones, TVs, appliances, carsFirst, from 2027–28
    110 nmPower and analog chipsPower supplies, motors, EVsIn licence; timing not stated
    40 nmLogic, embedded memoryConnectivity, IoT, displaysIn licence; timing not stated
    28 nmHigher-performance logicComputing, communications, carsLater; ‘key part’ of plan

    The Dholera Fab by the Numbers

    ItemDholera fabSource
    OwnerTata Semiconductor Manufacturing (Tata Electronics)PIB, Mar 2025
    Technology partnerPSMC, TaiwanTata, Sep 2024
    Lithography partnerASML (MoU)ASML, May 2026
    Project cost₹91,526 crore (~$11 billion)PIB, Mar 2025
    Central support50% of eligible cost, pari-passuPIB, Mar 2025
    Wafer size300 mm (12-inch)Tata
    Capacity50,000 wafer starts/monthPIB, Feb 2024
    Licensed nodes28, 40, 55, 90, 110 nmPIB, Feb 2024
    Starting nodes55 and 90 nmTata, Jul 2026
    SEZ66.166 ha, notified 9 Apr 2026PIB, Apr 2026
    Jobs20,000+ direct and indirectPIB, Mar 2025
    Commercial operationsMid-2028 (target)Vaishnaw, Jul 2026

    Third Time: India’s Earlier Fab Attempts

    Why 2013 and 2022 failed, and what is different now.

    India’s commercial fab attempts, 2013–2028201320152017201920212023202520272029Jaiprakash–IBM–TowerIn-principle 2013; partner pulled outHSMC–STMicro–SilterraLoI cancelled Apr 2018Vedanta–Foxconn, DholeraMoU Sep 2022; Foxconn out Jul 2023Tata–PSMC, Dholeratarget: commercial mid-2028Approved Feb 2024; under construction
    Grey bars ended without a fab. Dashed segment is the government’s stated target, not a completed period. Sources: PIB, company statements, contemporary reports.

    India’s first serious push came in 2013–14, when the government backed two consortia: Jaiprakash Associates with IBM and Tower Semiconductor near Greater Noida, and HSMC with STMicroelectronics and Silterra in Gujarat, each planning about 40,000 wafers a month. The technology partners were licensors, not investors, and neither group could raise the capital or line up customers. Jaiprakash pulled out and HSMC’s letter of intent was cancelled in 2018.

    The second attempt was Vedanta–Foxconn, which signed a ₹1.54 lakh crore MoU with Gujarat in September 2022 and chose Dholera. It never found a technology partner the government would accept, and Foxconn left in July 2023.

    Three things differ for Tata. The subsidy is larger and contractual: 50% of eligible cost from the Centre under a signed agreement, plus state support. The technology partner, PSMC, is a working foundry that is helping design and build the fab and train its staff, not just licensing a process. And the sponsor is a group with the balance sheet to carry a long build and a captive electronics business that can use the output. None of that guarantees yields or customers, which are what sank most new fabs elsewhere.

    Why Dholera, and What the Site Costs

    Dholera was chosen for land, not location. The Special Investment Region, designated in 2009, offered large contiguous plots, a state government willing to build roads, water and power to order, an airport under construction and space for suppliers. A fab also needs huge volumes of ultra-pure water and grid power that does not flicker: a split-second outage can scrap every wafer in process.

    The cost of the site turned out to be underground. The Bhal region is flat, low-lying, saline land near the Gulf of Khambhat, and reports in November 2025 said Tata had redesigned the foundations after finding clay-heavy, silty soil with low load-bearing capacity. Lithography tools that print features a few hundred atoms wide cannot sit on a floor that settles. Tata said the redesign kept the project on schedule.

    The Second Project: Building the Supply Chain

    A fab consumes photoresists, high-purity acids and solvents, specialty gases, spare parts and service engineers every hour. Most of that supply chain sits in Japan, Taiwan, Korea, Europe and the US. Tata’s 2025–26 agreements are an attempt to bring parts of it to Gujarat: Merck for materials and gas and chemical delivery systems, Sumitomo Chemical for photoresists and high-purity chemicals, Kelington for critical infrastructure, Sojitz and NRS for chemical logistics, and a 363-acre vendor park for about 450 suppliers. The government’s ISM 2.0, approved in July 2026, adds incentives for equipment, materials and gases. Whether those suppliers actually set up plants near Dholera, rather than shipping from abroad, is one of the clearest measures of whether the fab becomes an industry.

    Tata Dholera fab, India's first commercial chip plant, 2024 to 2028

    Corrections to Claims Circulating Online

    From the summary material this page was built from, and common in coverage.

    Date moved

    “Production begins in 2027”

    The government now says commercial operations in mid-2028 (Vaishnaw, July 2026). 2027 is when the cleanroom, tools and trial runs are expected.

    Node sequence

    “Chips from 110 nm to 28 nm”

    That is the licensed range. Output starts at 55 and 90 nm; 28 nm comes later.

    Wrong kind of plant

    “Micron Sanand produces DRAM and NAND”

    Sanand assembles, tests and packages memory chips. The memory wafers are made in Micron fabs abroad.

    Detail

    “Modi at the Dholera ceremony”

    The March 2024 foundation stones were laid by video link from New Delhi, for three projects at once.

    Detail

    “Two fabs approved in 2014”

    Approval in principle came in September 2013, letters of intent in 2014; neither fab was built.

    Missing

    2025–2026 setbacks and financing

    Summaries skip the soil redesign, the rare-earth warning, the $735 million loans, the Intel MoU, ISM 2.0 and the 2028 date.

    What Would Count as Success

    2027

    Cleanroom and tools

    Cleanroom qualified; ASML and other tools installed; first test wafers through the line.

    2027–28

    Yield

    Defect rates low enough on 90 and 55 nm to sell wafers at a profit after subsidy.

    Mid-2028

    Commercial output

    The government’s current target. Watch for named customers and volumes.

    After 2028

    28 nm and full capacity

    A 28 nm process in production and a ramp toward 50,000 wafers a month.

    Ecosystem

    Local suppliers

    Chemical, gas and parts makers producing near Dholera, not just warehousing imports.

    Talent

    Engineers who stay

    Process and equipment engineers trained at PSMC running the line, and later starting the next fab.

    Did You Know?

    • Two months per wafer: a chip wafer can take 8 to 12 weeks to pass through all of a fab’s steps.
    • Not India’s first fab: the government’s Semiconductor Laboratory at Mohali has made chips since the 1980s, on old, small-scale processes.
    • Dholera’s first chip plan was Vedanta’s, not Tata’s, in 2022.
    • 300 graduates were training in PSMC’s Taiwan fabs by September 2026.
    • Lithography tools travel by air in many crates and take months to reassemble and qualify.
    • ‘AI-enabled’: Tata says Dholera will use machine learning and data analytics for factory automation and yield.

    Quick Quiz

    1. What node will Dholera start production on?
    A. 3 nm · B. 28 nm · C. 55 nm and 90 nm · D. 7 nm
    C. 55 nm and 90 nm first, with 28 nm to follow, per Tata in July 2026.
    2. When are commercial operations now expected?
    A. December 2026 · B. Mid-2027 · C. Mid-2028 · D. 2030
    C. Mid-2028, according to Ashwini Vaishnaw in July 2026.
    3. Who licenses the process technology?
    A. TSMC · B. PSMC · C. Intel · D. ASML
    B. Powerchip Semiconductor Manufacturing Corporation of Taiwan. ASML supplies lithography tools.
    4. What is Micron’s Sanand plant?
    A. A memory fab · B. An assembly and test plant · C. A display fab
    B. It packages and tests memory chips made in Micron fabs abroad.
    5. Which company first picked Dholera for a chip plant?
    A. Tata · B. Vedanta–Foxconn · C. HSMC · D. Intel
    B. The Vedanta–Foxconn venture, in 2022. Foxconn left in July 2023.

    Explore More Timelines

    People Also Ask

    Where is Dholera?
    In Ahmedabad district, Gujarat, about 100 km south-west of Ahmedabad city, near the Gulf of Khambhat. It is the site of the Dholera Special Investment Region, a planned industrial city.
    Who owns Tata Electronics?
    Tata Sons, the holding company of the Tata Group. Tata Semiconductor Manufacturing, which owns the Dholera fab project, is a subsidiary of Tata Electronics.
    What does nm mean in chips?
    Nanometre. Today it is a name for a generation of manufacturing process rather than an exact physical size. Smaller numbers mean denser, faster and more efficient transistors.
    Who heads Tata Electronics?
    Randhir Thakur, CEO and Managing Director. He spoke for the company when the 2025 fiscal support agreement was signed and at SEMICON India 2026.
    What is a wafer start?
    One blank silicon wafer entering the fab’s production line. Fab capacity is measured in wafer starts per month (WSPM).

    Frequently Asked Questions

    What is the Tata Dholera fab?
    A 300 mm semiconductor wafer fabrication plant being built by Tata Electronics, through its unit Tata Semiconductor Manufacturing, in the Dholera Special Investment Region of Gujarat. It is designed to make chips on 28 nm to 110 nm process technologies licensed from Taiwan’s PSMC, with a planned capacity of 50,000 wafer starts a month.
    Is Dholera India’s first semiconductor plant?
    It is India’s first commercial front-end fab, the kind of plant that makes the chip circuits on a silicon wafer. India already has older, smaller government fabs such as the Semiconductor Laboratory in Mohali, and several assembly and test plants that package chips made elsewhere. Dholera is the first large commercial wafer fab.
    How much does the Dholera fab cost?
    The Cabinet approved it in February 2024 at about ₹91,000 crore, roughly $11 billion. The Fiscal Support Agreement signed on 5 March 2025 put the project at ₹91,526 crore. The Centre has committed fiscal support equal to 50 percent of eligible project costs, paid in step with Tata’s own spending.
    When will the Dholera fab start production?
    Commercial operations are now expected in mid-2028, according to IT minister Ashwini Vaishnaw in July 2026. In March 2024 he had said the first chip would come out in December 2026. Reported plans have the cleanroom ready and tools going in during 2027, with trial runs before commercial output.
    Will Dholera make 28 nm chips?
    Eventually. PSMC’s licence covers 28, 40, 55, 90 and 110 nm. Bloomberg reported in July 2026 that production would start mainly at 90 nm; Tata said its plan had always been to begin with 55 nm and 90 nm and then add 28 nm, which it called a key part of its offering.
    What is the capacity of the Dholera fab?
    50,000 wafer starts per month at full capacity, on 300 mm (12-inch) wafers. A wafer start is one blank wafer entering the production line. Each 300 mm wafer can carry hundreds to thousands of chips, depending on their size, so actual chip output depends on the product mix.
    Who is Tata’s technology partner at Dholera?
    Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan. Under a definitive agreement announced on 26 September 2024, PSMC licenses its process technologies, provides design and construction support for the fab, and gives engineering support. About 300 Indian graduates were training at PSMC fabs in Taiwan by September 2026.
    What is ASML’s role in Dholera?
    ASML, the Dutch maker of lithography machines, signed a memorandum of understanding with Tata Electronics on 16 May 2026, witnessed by Prime Minister Modi in the Netherlands. ASML will support the fab’s set-up and ramp-up with its lithography tools and help build local lithography skills, R&D infrastructure and supply-chain resilience.
    What is the difference between a fab and an OSAT?
    A fab, or front-end plant, builds the transistors and wiring on a silicon wafer through hundreds of steps of deposition, lithography, etching and implantation. An OSAT, or assembly and test plant, takes finished wafers, cuts them into dies, packages and tests them. Fabs cost far more and are much harder to run.
    What will the chips from Dholera be used in?
    Tata has named power-management chips, display drivers, microcontrollers and high-performance computing logic, for markets such as cars, mobile devices, industrial equipment, communications and AI hardware. These are mature-node chips. Dholera will not make leading-edge AI accelerators, which need 5 nm or smaller.
    Why does a mature-node fab matter?
    Most chips shipped by volume are not cutting-edge. Microcontrollers, power and analog chips, display drivers and many automotive parts use 28 nm or older processes. These were among the chips that ran short in 2021 and stopped car lines worldwide, which is why many countries want local mature-node capacity.
    How many jobs will the Dholera fab create?
    The government has said more than 20,000 direct and indirect skilled jobs. The April 2026 notification of the Tata Semiconductor Manufacturing SEZ put proposed employment at 21,000. Tata has said its wider multi-fab vision for Dholera could create more than 1,00,000 jobs, but that is an ambition, not an approved project.
    Why was Dholera chosen for the fab?
    Dholera is a planned greenfield city in Gujarat’s Special Investment Region, with large land parcels, new power, water and road links, an airport under construction and a state government offering its own incentives. The Vedanta-Foxconn venture had also picked Dholera in 2022. The site’s weakness is its soft, saline soil.
    What problem did Tata find with Dholera’s soil?
    In November 2025 it was reported that Tata had redesigned the fab’s foundations after studies found the reclaimed land was clay-heavy, saline and silty, with low load-bearing capacity. Fabs need very stable, vibration-free floors. Tata brought in Fugro and Cengers and said the project remained on schedule.
    What is the Dholera SEZ?
    A special economic zone for Tata Semiconductor Manufacturing, notified on 9 April 2026 and announced by the government on 16 April. It covers 66.166 hectares, with proposed investment of ₹91,000 crore and employment for 21,000 people. The SEZ rules had been changed in June 2025 to cut the minimum land for semiconductor zones from 50 to 10 hectares.
    How is the Dholera fab financed?
    Through Tata’s own equity, central fiscal support of 50 percent of eligible costs under the India Semiconductor Mission, Gujarat state incentives, and loans. In February 2026 Tata Semiconductor Manufacturing signed about $735 million of loans from HSBC, MUFG, DBS, First Abu Dhabi Bank and ANZ, repayable by 2031.
    Did India try to build a chip fab before Tata?
    Yes, several times. In 2013–14 the government backed two fab consortia, one led by Jaiprakash Associates with IBM and Tower, the other by HSMC with STMicroelectronics and Silterra; neither was built. In 2022 Vedanta and Foxconn planned a ₹1.54 lakh crore project at Dholera; Foxconn pulled out in July 2023.
    What happened to the Vedanta-Foxconn project?
    Vedanta and Foxconn signed an MoU with Gujarat on 13 September 2022 for a ₹1.54 lakh crore semiconductor and display complex, and later chose Dholera as the site. On 10 July 2023 Foxconn said it was withdrawing from the joint venture. The project never received central approval as a fab.
    What is the India Semiconductor Mission?
    The government programme that runs India’s chip incentives. The Cabinet approved the first ₹76,000 crore programme on 15 December 2021, which funded Dholera and the assembly plants. In July 2026 it approved ISM 2.0, about ₹1.27 lakh crore over six years, extending support to equipment, materials, gases, design and talent.
    What did Tata announce at SEMICON India 2026?
    At SEMICON India, held in New Delhi from 17 to 19 September 2026, Tata Electronics said the Dholera fab and its Assam assembly plant remained aligned with government schedules, with more than 450 ecosystem partners engaged at Dholera. It signed agreements with Sumitomo Chemical, Kelington, Enomoto, Sojitz with NRS, and L&T Semiconductor.
    What is the Dholera vendor park?
    A 363-acre plug-and-play park near the fab, reported in October 2026, being developed with Singapore’s Ascendas Firstspace for about 450 suppliers. It is meant to keep chemicals, gases, spare parts and maintenance services close to the fab, so production is not held up by long supply lines.
    Does Intel have a deal with Tata Electronics?
    Yes. On 8 December 2025 Tata Electronics and Intel signed an MoU to explore manufacturing and packaging Intel products for Indian markets at Tata’s Dholera fab and Assam assembly plant, and to work on advanced packaging. It is an exploratory agreement, not a confirmed manufacturing order.
    Is Micron’s Sanand plant a fab?
    No. Micron’s Sanand plant in Gujarat is an assembly, test, marking and packaging unit. It packages and tests memory chips whose wafers are made in Micron fabs abroad. That is why Dholera, not Sanand, is described as India’s first commercial chip fabrication plant.
    What could still delay Dholera?
    The usual fab risks: tool deliveries and installation, yield on the first process nodes, training enough engineers, getting ultra-pure chemicals and gases locally, and signing customers. Specific risks reported so far include the soil redesign in 2025 and possible shortages of rare earths and critical minerals.
    What did the material this page was built from get wrong?
    It said production would begin in 2027; the government now says commercial operations in mid-2028. It implied output across 28–110 nm from the start; production will begin at 55 and 90 nm. It described Micron’s Sanand plant as producing DRAM and NAND; Sanand assembles and tests memory, it does not make wafers.

    Where Dholera Stands

    Two and a half years after approval, Dholera has its money, its technology licence, its lithography partner, its SEZ and a growing list of suppliers. What it does not yet have is a working cleanroom, installed tools, a single wafer or a named volume customer. The schedule has slipped about eighteen months from the first promise, and the first products will use the most mature processes in its licence.

    That is not unusual for a first fab, and it is further than India has ever got. The milestones to watch are concrete: the first tool move-in, first wafers in 2027, a named customer, and commercial output by mid-2028. If those land, the larger prize is the people and suppliers the fab trains, which is what would make the next Indian fab cheaper and faster.

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    ⚠️ Editorial Note

    Last updated 5 October 2026. Approval, cost, capacity, node and SEZ figures come from Press Information Bureau releases; partnership details from Tata Electronics, ASML and PSMC statements; schedule changes from named reports (Bloomberg, Reuters, Mint) and ministerial remarks as reported. Targets are as stated and may change again. Nothing here is investment advice.

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