Tata Electronics Plans Two More Semiconductor Fabs in Gujarat’s Dholera, Eyes Long-Term Global Demand

Tata Electronics is set to expand its semiconductor manufacturing footprint in India by establishing two more fabrication units in Gujarat’s Dholera Special Investment Region (SIR). The move is aimed at strengthening India’s domestic chip manufacturing capabilities and positioning the company as a key player in the global semiconductor supply chain, according to people familiar with the matter.

The expansion comes alongside Tata Electronics’ ongoing partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC), under which a ₹91,000-crore semiconductor fab is already under development in Dholera. This first facility, expected to begin production by 2026, will mark India’s entry into large-scale semiconductor manufacturing and is designed to serve both domestic and international markets.

While the first fab is progressing steadily, plans for the second and third fabs are currently at an early stage. Industry sources indicate that partnerships, timelines, and technology choices for the additional facilities are yet to be finalised, with production likely to commence within the next five to seven years. These fabs are expected to operate at a scale similar to the initial facility.

Construction activity for the first fab began in March at Dholera, with the initial phase focusing on installing core infrastructure, testing equipment, and developing pilot production lines before full-scale commercial operations begin. Tata Electronics is also reported to be in discussions with potential buyers for the chips to be produced at the facility.

With global semiconductor demand being driven by technologies such as artificial intelligence, electric vehicles, 5G, and advanced electronics, Tata Electronics’ planned expansion at Dholera underscores its long-term commitment to the sector and supports India’s ambition of reducing reliance on imported chips.