Tata Group to Build the Nation’s First Fab in Dholera

Tata Group to Build a Semiconductor Factory in Dholera

26 Mar,2024 | Avirahi Group

Government of India has authorized Tata Electronics’ proposal to develop a massive semiconductor fabrication facility (or “Fab”) in Dholera, Gujarat in conjunction with PSMC, marking a key step towards building an indigenous semiconductor ecosystem in India that is aimed at producing goods that are “Made in India, For the World.” With a potential investment of up to INR 91,000 crores (~US$11 billion), the fab construction is set to commence this year and is expected to create over 20,000 skilled employment in the region, both direct and indirect. Tata Electronics joins the global semiconductor market with this announcement. The residential projects in dholera sir region have already seen a major hype and with this new collaboration, the dholera sir residential plots price are certainly going to get a raise.

India’s first AI-enabled state-of-the-art fabrication facility will be constructed by Tata Electronics, a fully owned subsidiary of Tata Sons Pvt. Ltd., in collaboration with Powerchip Semiconductor Manufacturing Corporation (PSMC). In order to achieve industry-best factory efficiency, this Fab will use data analytics and machine learning to reach next generation factory automation capabilities, with a manufacturing capability of up to 50,000 wafers per month. In response to the increasing demand in industries like artificial intelligence, computing and data storage, automotive, display drivers, power management integrated circuits (IC), and high-performance computing logic, the new semiconductor fab will produce chips for these and other applications.

The Tata Group’s decision to construct a semiconductor factory in Dholera was revealed by N Chandrasekaran, Chairman of Tata Sons, at the 20th Vibrant Gujarat Summit in January 2024. “Tata Group has a tradition of pioneering many sectors in the country, and we are confident that our entry in semiconductor fabrication will add to this legacy,” he stated in reference to the proposed semiconductor Fab.

Semiconductors will be the most important building component as AI drives the digitization of every aspect of human existence. The global semiconductor market is predicted to reach $1 trillion by 2030, while Indian semiconductor consumption is predicted to surpass US$110 billion. India will become a major player in the global semiconductor industry and dramatically reduce the risk in global supply chains as a result of its entry into the semiconductor manufacturing sector. This would also hasten the process of giving India’s youth access to high-tech employment possibilities.

Dr. Randhir Thakur, CEO & MD of Tata Electronics, emphasized the importance of this strategic move by saying, “This marks the beginning of a new era for India.” Tata Electronics takes great pride in its significant contribution to fortifying the worldwide semiconductor industry. Through our collaboration with PSMC, we can access a wide range of cutting-edge and mature nodes, such as 28 nm, 40 nm, 55 nm, 90 nm, and 110 nm, as well as work together on high volume manufacture. We have no doubt that the next Fab will help us achieve our goal of “Made in India, For the World.”

Access to cutting-edge and established technologies will be made possible by PSMC, one of Taiwan’s top pure-play foundry firms with competencies spanning logic and memory technologies. The PSMC Chairman, Dr. Frank Hong, stated: “The Tata group is one of the most reputable and well-known brands in India and around the world. We are thrilled to be forming a relationship with the Tata Group, which I think will usher in a new era for the world’s semiconductor business. India is in a great position to take advantage of the significant and expanding opportunities presented by the semiconductor industry. India is a country with a sizable and expanding local market as well as a reputation for resilient supply chains that attracts international buyers. There has never been a better moment for India to enter the semiconductor manufacturing sector. We are excited to work with Tata Electronics and believe that this cooperation has the potential to completely change the landscape of semiconductor manufacturing worldwide.”

Through this new initiative, Tata Electronics hopes to establish the groundwork for the development of an indigenous semiconductor ecosystem in India by bringing to the country a portfolio of cutting-edge semiconductor technologies, an advanced skill set and talent, and a network of suppliers and ecosystem partners involved in semiconductor manufacturing.

The Avirahi Group, earlier known as “Abhigna Group of Companies” is one of the most trusted names in the real estate sector. With their involvement in making Dholera one of the prime sectors of Gujarat, is certainly one of the most promising things happening in the state. To find out more about them, reach out at avirahi.com

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