Technology

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

Tata Electronics is building India's first commercial semiconductor fab at Dholera, Gujarat: a Rs 91,526 crore, 300 mm plant with technology from Taiwan's PSMC…

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THE SITE

Gujarat creates Dholera SIR

A flat, low-lying stretch of Gujarat's Bhal region near the Gulf of Khambhat, designated a Special Investment Region in 2009.

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FAILED TRY

Two fabs approved, none built

Two consortia won in-principle approval in 2013. Neither raised the money; HSMC's letter of intent was cancelled in 2018.

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THE MISSION

Rs 76,000 crore chip programme

The India Semiconductor Mission programme approved in December 2021 pays up to half of a fab's project cost.

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FALSE START

Vedanta-Foxconn picks Dholera, then splits

Vedanta and Foxconn chose Dholera in 2022 for a Rs 1.54 lakh crore plan. Foxconn quit in July 2023.

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APPROVED

Cabinet clears India's first commercial fab

A 300 mm fab with Taiwan's PSMC, 50,000 wafer starts a month on 28 to 110 nm processes.

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GROUNDBREAKING

First chip promised for Dec 2026

At the foundation stone, minister Ashwini Vaishnaw said the first chip would come out in December 2026.

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PSMC

Taiwan's PSMC signs the definitive deal

Process technology licences from 28 to 110 nm, fab design and construction support, and engineering help.

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THE MONEY

Rs 91,526 crore support agreement

The Centre pays 50% of eligible cost in step with Tata's spending, under the March 2025 agreement.

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SOFT GROUND

Foundations redesigned

Studies found Dholera's reclaimed land had low load-bearing capacity. Tata redesigned the foundations.

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INTEL

Intel MoU to explore Dholera

Tata and Intel signed an MoU in December 2025 to explore making and packaging Intel products in India.

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SEZ

66-hectare fab SEZ notified

A 66.166-hectare special economic zone for Tata Semiconductor Manufacturing, notified on 9 April 2026.

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ASML

ASML backs the fab

ASML makes the lithography machines every fab needs. Its May 2026 MoU covers set-up, ramp-up and training.

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DATE MOVED

90 nm first, commercial output mid-2028

Production starts at 55 and 90 nm. The government now expects commercial operations in mid-2028.

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SEMICON

Suppliers sign up

Over 450 partners are engaged. Sumitomo Chemical, Kelington and Sojitz with NRS signed at SEMICON India 2026.

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VENDOR PARK

363 acres for 450 suppliers

Keeping chemicals, gases and spare parts beside the cleanroom so production never waits.

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WHAT TO WATCH

Tools in, first wafers, a customer

Watch for tool move-in, first wafers in 2027, named customers, and commercial output by mid-2028.

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