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India's semiconductor era begins: Inside Tata's first chip plant
The ₹91,000 crore project is expected to start chip production by December 2026

India's semiconductor era begins: Inside Tata's first chip plant

Jun 16, 2025
12:37 pm

What's the story

Tata Electronics is establishing India's first semiconductor fabrication facility in Dholera, near Ahmedabad. The ₹91,000 crore project is expected to start chip production by December 2026. The move marks a major milestone for the country's electronics and technology manufacturing sector. The fab aims to produce up to 50,000 wafers per month and create over 20,000 direct and indirect jobs.

Government assistance

Gujarat govt building 1,500 residential units for Tata employees

To facilitate this major investment, the Gujarat government is facilitating the construction of 1,500 residential units for Tata employees and vendors. The initiative is part of a larger plan to make Dholera Special Investment Region (DSIR) a global electronics manufacturing hub. Mona Khandhar, Principal Secretary of the Department of Science and Technology, clarified that these facilities were built by private developers on auctioned plots through a special purpose vehicle set up by the state.

Infrastructure progress

What is the status of the housing project?

Currently, there are 275 apartments ready for occupation, with 250 already occupied by Tata employees and ecosystem partners. Another 225 units are nearing completion while work on an additional 1,000 apartments is underway. The residential complexes offer one-, two-, and three-bedroom serviced options close to the fabrication site. Beyond housing, the Gujarat government is developing essential civic amenities like a fire station, school, hospital among others for a globally diverse workforce.

Expatriate accommodation

Global Tent City to make expatriates feel at home

Among the many developments, a 'Global Tent City' is also being planned. It will have culinary streets inspired by Taiwan, South Korea, Japan, the US and Europe to make expatriates feel at home. The first phase of Tata's housing plan spans 10 acres and aims to add 530 more apartments by mid-2027.

Job creation

India's chip self-reliance, boost electronics exports

The Dholera unit is expected to be a game-changer in India's chip self-reliance, reducing dependence on imported semiconductors and boosting electronics exports. It also strengthens India's position in the global semiconductor supply chain as countries are moving away from China-centric manufacturing.