Tata Electronics Partners with PSMC to Establish $11B AI Chip Plant in Dholera, Gujarat
Tata Electronics is partnering with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) to establish a landmark $11 billion AI-enabled semiconductor fabrication plant in Dholera, Gujarat. The facility, set to commence operations by late 2026, will produce 50,000 wafers per month, significantly advancing India's goal of becoming a self-reliant global hub for high-tech manufacturing.
$11B Dholera Fab to Boost India’s Semiconductor Self-Reliance, Creating Jobs and Strengthening AI-Driven Manufacturing Supply Chains
In a landmark development for India’s industrial automation and semiconductor sector, Tata Electronics has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to establish an AI-enabled semiconductor fabrication plant in Dholera, Gujarat.
The facility, valued at $11 billion (approx ₹91,000 crore), will produce 50,000 wafers per month, focusing on analog and logic IC chips, critical for AI, IoT, and electronics applications. The collaboration includes technology transfer from PSMC, ensuring adoption of advanced manufacturing processes and global best practices.
The plant is expected to commence operations by late 2026, creating thousands of direct and indirect jobs. Government support under the PLI scheme incentivizes investment, aligning with India’s vision of becoming semiconductor self-reliant and a global hub for high-tech manufacturing.
Key executives involved include Mr. Sanjay Dhoot, MD of Tata Electronics, and Mr. Jason Chen, CEO of PSMC, highlighting the strategic importance of this partnership. Analysts suggest that this facility will strengthen India’s electronics supply chain and accelerate adoption of automation in semiconductor manufacturing.
"In a major boost for India’s semiconductor and automation sectors, Tata Electronics is partnering with Taiwan’s PSMC to establish an AI-enabled semiconductor fabrication plant in Dholera, Gujarat. Valued at $11 billion, the facility will produce 50,000 wafers per month, focusing on analog and logic IC chips. The project includes technology transfer from PSMC and is expected to start operations by late 2026, creating thousands of jobs. Key executives include Sanjay Dhoot of Tata Electronics and Jason Chen of PSMC. This initiative strengthens India’s semiconductor supply chain and reinforces the country’s vision of self-reliance in high-tech manufacturing and industrial automation."
