Tata Electronics Signs Fiscal Deal to Build India’s First Chip Fab

In a landmark move for India’s semiconductor industry, India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a Fiscal Support Agreement (FSA) to establish India’s first commercial semiconductor fab in Dholera, Gujarat. The agreement marks a crucial step toward India’s technological self-sufficiency under the government’s semiconductor and display manufacturing program.

₹91,000 Crore Investment to Strengthen India’s Chip Ecosystem

The Tata Electronics semiconductor fab will be built with an investment of over ₹91,000 crore and will have a capacity of 50,000 wafer starts per month (WSPM). The Indian government, through ISM, has pledged 50% fiscal support on a pari-passu basis for eligible project costs. This demonstrates India’s strong commitment to developing a robust domestic semiconductor ecosystem.

Boosting Jobs, Innovation & Global Semiconductor Supply Chains

The project is expected to create over 20,000 direct and indirect skilled jobs. Partnering with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), Tata Electronics aims to cater to global semiconductor markets in automotive, computing, AI, and communications.

Leaders’ Vision for India’s Semiconductor Future

Sushil Pal, CEO of ISM, affirmed the government’s commitment to timely fiscal disbursement, emphasizing India’s ambition to emerge as a global semiconductor hub. Dr. Randhir Thakur, CEO and MD of Tata Electronics, hailed the FSA as a milestone, reinforcing Tata’s commitment to “Chips for Viksit Bharat.”

With strategic government support, the project will drive innovation, create employment, and position India as a major force in the global semiconductor supply chain.

Source: PIB