In a significant boost for India’s semiconductor industry, the India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have officially signed a Fiscal Support Agreement (FSA).
This landmark agreement, witnessed by the Chief Minister of Gujarat Shri Bhupendra Patel, marks a decisive step towards establishing India’s first commercial semiconductor fab in Dholera, Gujarat.
The project is valued at over ₹91,000 crore and boasts a capacity of 50,000 wafer starts per month (WSPM). The Government of India, through ISM, has committed to providing 50% fiscal support for eligible project costs, underscoring its dedication to creating a world-class semiconductor ecosystem within the country.
This initiative is expected to generate over 20,000 direct and indirect skilled jobs, significantly contributing to India’s technological self-reliance. The project also benefits from a technological alliance with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), which enhances the collaboration.
The semiconductor fab will address critical global markets, including the automotive, computing, communications, and artificial intelligence sectors. This groundbreaking facility will transform India from a technology consumer into a global manufacturing powerhouse.
Shri Sushil Pal, CEO of the India Semiconductor Mission, emphasized the government’s commitment to the timely disbursement of fiscal support, highlighting India’s ambitions in indigenous semiconductor manufacturing. Dr. Randhir Thakur, CEO and MD of Tata Electronics, echoed these sentiments, noting the historic milestone for India and Tata Electronics in their journey to establish a semiconductor manufacturing industry.
The project aims to drive technological innovation and contribute substantially to India’s economic growth, positioning the country as a key player on the global semiconductor stage. The strategic fiscal support from the Government of India will accelerate the expansion of the semiconductor industry, launching a new era of technological self-reliance for the nation.
