India has begun construction on its first AI-enabled semiconductor fab in Dholera, Gujarat, through a partnership between Tata Electronics and Taiwan’s Powerchip Semiconductor. With an investment of Rs. 91,000 crore, the facility aims to produce 50,000 wafers per month by 2026 and create 20,000 jobs. It will focus on manufacturing microchips for sectors like automotive, AI, and communications, utilizing advanced AI systems and next-gen automation tools.
Gujarat’s strategic location, policy support, and infrastructure, including power and water resources, make Dholera ideal for this venture. The state’s Semiconductor Policy offers subsidies for capital expenditure and land, attracting businesses to the region. Additionally, Gujarat’s energy infrastructure and plans for desalination ensure a steady supply of necessary resources.
Tata Electronics is also building a semiconductor assembly and testing facility in Assam, further enhancing India’s capabilities in chip manufacturing. With growing domestic semiconductor demand, India’s semiconductor industry is poised to become a major global player, reducing dependence on foreign suppliers.
Dholera’s development parallels Taiwan’s Hsinchu Science Park, positioning Gujarat as a future semiconductor hub with global significance.