Tata Electronics is building two more fabrication factories, or fabs, in Dholera, Gujarat, to increase its presence in the semiconductor business. This action is a component of the company’s broader plan to establish Tata as a major player in the global semiconductor market by creating a strong domestic chip manufacturing ecosystem that can fulfill rising demand worldwide.
Tata’s First Semiconductor Fab to Begin Operations in 2026
The foundation construction for Tata’s first semiconductor factory began in March of this year at the Dholera Special Investment Region. The production of chips for diverse applications such as microcontrollers, display drivers, power management circuits, and high-performance computer logic will be the main focus of this facility.
Artificial intelligence, wireless communication, data storage, and the automotive industry will all depend heavily on these chips. The fab can generate up to 50,000 wafers a month at full capacity.
This project is being constructed in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan, with a first phase valued at INR 91,000 crore. Production at the fab is anticipated to start in 2026.
Tata Electronics’ Plans for Second and Third Chipmaking Units
Similar scale plans call for the development of the second and third fabs, which should start within the next five to seven years. It is uncertain, therefore, if Tata Electronics and PSMC will continue to collaborate on these upcoming fabs. Partnership decisions, as well as the infrastructure and technology requirements for these initiatives, will be contingent upon the demands of the world semiconductor market at that particular moment.
All three fabs will share some infrastructural components, some of which are already under construction as part of the first phase. According to a top executive participating in the project, this shared strategy is anticipated to save costs for the second and third stages; however, the overall expenditure will remain large.
Additionally, Tata Electronics is in discussions with a number of possible customers for the chips that will be made at the Dholera plant. The enterprises within the Tata Group, namely Tata Motors, Tata Play, and Tata Teleservices, are anticipated to be among the first clients. These companies are major users of integrated circuits. Furthermore, the company is collaborating with suppliers and setting up ancillary units in an effort to forge a robust local supply chain.
Additionally, a residential complex for the 4,000–5,000 workers who would be employed at the Dholera fab is being built.
Tata Electronics Assam Chip Factory
Gujarat is just one location of Tata’s growing chip manufacturing business. Also, the business is moving on with the construction of a Rs 27,000 crore testing and assembly facility in Jagiroad, Assam. After completing environmental assessments, a flood risk analysis, and other preparatory studies, work on the 600-acre property started last month. By mid-2025, the Assam factory is expected to start producing in large quantities, with a daily output of up to 48 million chips.
Wire bond, flip chip, and Integrated Systems Packaging (ISP) are the three main technologies that this plant will concentrate on; further research into more sophisticated packaging options is planned.
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