India’s First Semiconductor Fab in Dholera (2024–2028): Tata Electronics Timeline and Progress

India’s Semiconductor Moment: Tata’s Big Bet on Dholera and Assam:

The semiconductor industry in India is witnessing a historic transformation, and Tata Semiconductor has emerged as a central force in this shift. From its formal announcement in early 2024 to projected commercial production between 2026 and 2028, Tata’s semiconductor initiatives in Dholera Smart City, India and Assam aim to build a strong domestic semiconductor ecosystem while positioning India as a global hub for chip manufacturing.

In this report, Dholera Times explores Tata Semiconductor’s timeline, development progress, fabrication capacity, and future expansion plans, with a focused look at Dholera SIR investment and its growing importance in India’s electronics and manufacturing landscape.

Why Tata Semiconductor Is Central to India’s Chip Manufacturing Strategy

Under the India Semiconductor Mission, the Government of India is actively promoting domestic chip manufacturing to reduce import dependence and strengthen the electronics and semiconductor manufacturing industry in India. Tata’s entry places it among the most influential semiconductor manufacturing companies in India, driving large-scale infrastructure development, employment generation, and long-term industrial growth.

The initiative also aligns with broader smart city investments, influencing property investment in India, land investment in India, and positioning Dholera among the most promising upcoming cities in India for industrial-led development.

From Announcement to Production: Tata Semiconductor’s India Timeline

Vibrant Gujarat 2024: Tata Announces India’s First Large Semiconductor Fab

In January 2024, at the Vibrant Gujarat Global Summit, the Tata Group announced plans to establish India’s first large-scale semiconductor fabrication plant in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).

The integrated plan also included a semiconductor assembly and test (OSAT) facility in Jagiroad, Assam, creating a complete chip manufacturing value chain within India

Cabinet Clearance Under India Semiconductor Mission

On February 29, 2024, the Union Cabinet approved Tata Electronics’ semiconductor projects, clearing:

• ₹91,000 crore for the Tata Semiconductor fab in Dholera
• ₹27,000 crore for the Tata semiconductor plant in Assam

This marked one of the largest commitments to semiconductor manufacturing in India.

PM Modi Virtually Flags Off Dholera and Assam Semiconductor Projects

On March 13, 2024, Prime Minister Narendra Modi virtually performed the Bhumi Pujan and foundation-laying ceremony for:

• The semiconductor fabrication facility in Dholera, Gujarat
• The OSAT (assembly and test) facility in Jagiroad, Assam

The combined investment of approximately ₹1.18–1.26 lakh crore positioned the project as a landmark mega-industry initiative under the Dholera Smart City project.

On-Ground Construction Begins at Assam OSAT Facility

A physical Bhumi Pujan ceremony was held on August 3, 2024, for the semiconductor assembly and test unit in Jagiroad, Assam, marking the start of on-ground construction.

Assam OSAT Highlights

• Technologies: Wire Bond, Flip Chip, Integrated Systems Packaging (ISP)
• Target capacity: ~48 million chips per day
• Civil construction commenced immediately

Building the Backbone: Infrastructure Takes Shape in Dholera and Assam (2024–2025)

Dholera Semiconductor Fab

• Land preparation and core infrastructure development
• Construction of clean rooms, utilities, and support facilities
• Integration with the Dholera industrial area, Dholera Solar Park, and smart city water management systems

Assam OSAT Facility

• Structural and foundation work progresses
• Local hiring and skill development initiatives begin

Connectivity through the Ahmedabad–Dholera Expressway and proximity to the Dholera International Airport further strengthened Dholera’s industrial readiness.

Assam Unit Set to Become India’s First Operational Output Point

By mid-to-late 2025, the first operational phase of the Tata semiconductor plant in Assam is expected to begin. The unit will start chip assembly and testing, supporting India’s expanding electronics manufacturing industry.

Advanced Chip-Making Equipment Installation at Dholera Fab (2025–2026)

During this phase:

• Advanced wafer fabrication tools are installed
• Clean-room environments and utility systems are calibrated
• Trial runs and process validation begin

This stage is critical for establishing Tata among the leading semiconductor fab players in India.

First ‘Made-in-India’ Tata Semiconductor Chips Expected

The Tata Semiconductor fab in Dholera is expected to achieve its first commercial chip production by late 2026. Initial production is likely to focus on:

• Power management ICs
• Microcontrollers
• Logic and automotive chips

The Assam OSAT facility is expected to scale output in parallel for domestic and international markets.

Scaling Up: Capacity Stabilisation and Future Expansion Outlook (2027–2028)

By 2027–2028, production capacity is expected to stabilize and scale further. Exploratory discussions related to Intel semiconductor manufacturing in India remain under evaluation, with no confirmed timelines announced.

Tata Electronics has also indicated long-term expansion potential in Dholera, subject to regulatory approvals and market conditions.

Key Numbers: Capacity, Technology Nodes, and Investment Size

• Manufacturing Nodes: 28nm, 40nm, 55nm, 90nm, 110nm
• Dholera Fab Capacity: ~50,000 wafers per month
• Assam OSAT Capacity: ~48 million chips per day
• Total Investment: ~₹1.18 lakh crore
• Employment Impact: ~50,000 direct and indirect jobs

Beyond Chips: How Dholera Is Emerging as a Multi-Industry Hub

The rise of Tata Semiconductor has accelerated interest in Dholera plots, Dholera SIR investment, and broader smart city investments tied to long-term property investment in India.

Dholera’s importance goes well beyond semiconductors. While Tata Semiconductor serves as an industrial anchor, the region is steadily developing a broader ecosystem that includes renewable energy, logistics and warehousing, and automotive and EV manufacturing. Supported by infrastructure such as the Ahmedabad–Dholera Expressway, proposed port connectivity, the Dholera Solar Park, the upcoming Dholera International Airport, and EV charging infrastructure, Dholera is positioning itself as a future-ready industrial hub of India.

What Tata Semiconductor Means for India’s Industrial Future

Between 2024 and 2028, Tata Semiconductor’s journey marks a defining phase in India’s semiconductor manufacturing landscape. Backed by supportive government policy under the India Semiconductor Mission, strategic global technology partnerships with companies like PSMC, and advanced infrastructure in Dholera Smart City, India, the project is set to establish a resilient and future-ready semiconductor ecosystem for the country.

Beyond chip fabrication, the project is expected to catalyze industrial growth across multiple sectors in Dholera.

In short, Tata Semiconductor’s journey is not just about chips- it is about reshaping India’s industrial landscape, driving economic growth, and establishing Dholera as a future-ready innovation and manufacturing hub.