New Delhi: India marks a historic milestone as Tata Electronics officially launches the country’s first semiconductor fabrication unit in Gujarat. This move not only places India firmly on the global semiconductor map but also signals a transformative leap towards self-reliance in chip manufacturing, a sector that powers everything from smartphones and laptops to defense systems and electric vehicles.
Tata Electronics inaugurated its state-of-the-art semiconductor fabrication plant in Dholera, Gujarat, on June 8, 2025. It is backed by a significant investment of Rs. 91,000 crore. This fab facility is the first of its kind in India. With Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) as its technology partner, Tata’s plant will produce cutting-edge 28nm chips, a node widely used in automotive, consumer electronics, and industrial applications.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
This launch is aligned with India’s larger goal under the “Make in India” and “Digital India” missions, aiming to reduce dependence on imported chips, enhance tech sovereignty, and generate high-value employment.
Additionally, Semiconductors are the brains of modern electronics. From smartphones and computers to cars and medical devices, they are crucial components. A domestic fab plant in India can design, build, and pioneer its chip ecosystem without relying on international supply chains, which often face delays, geopolitical tensions, and price fluctuations.
Tata’s initiative will also help reduce India’s annual semiconductor import bill, which crossed Rs 20 billion in recent years. Dholera, part of the Delhi-Mumbai Industrial Corridor, has been strategically chosen for this fab unit due to its robust infrastructure, reliable power supply, and supportive state government policies. The project is expected to create over 20,000 direct and indirect jobs, boost local economies, and attract global investments in the electronics manufacturing sector.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
Nevertheless, Tata Electronics’ approach is different because of its focus on building a complete semiconductor ecosystem. The company has already announced plans for a semiconductor research and design center, which will involve skilling programs in partnership with IITs and polytechnics. It will add to local vendor development to supply components and services. This ecosystem will nurture talent, spark innovation, and empower startups working in chip design, embedded systems, and next-gen tech.
Globally, countries like the US, South Korea, and China have dominated semiconductor manufacturing. With the Tata Electronics fab, India officially enters this elite circle. The move is also being seen as a strategic response to global chip shortages and rising tensions in East Asia.
Furthermore, Gujarat Fab positions India as a reliable alternative in the global supply chain, something international partners and tech giants are keenly watching. The launch of Tata Electronics’ semiconductor fabrication unit is more than a business achievement; it’s a bold step toward India’s tech-powered future. As chips become the oil of the 21st century, India’s ability to design and manufacture them domestically will define its digital destiny.