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The semiconductor industry in India is undergoing a historic transformation, and Tata Semiconductor is at the forefront of this shift. From its formal announcement in early 2024 to projected commercial production by 2026–2028, Tata’s semiconductor initiatives in Dholera Smart City, India and Assam aim to establish a strong domestic semiconductor ecosystem while positioning India as a global hub for chip manufacturing.
In this blog, we explore Tata Semiconductor’s timeline, development progress, fabrication capacity, and future expansion plans, with a focused look at Dholera SIR investment and its growing importance within India’s electronics and manufacturing landscape.
India’s Semiconductor Push and Tata’s Strategic Role
Under the India Semiconductor Mission, the Government of India is actively promoting domestic chip manufacturing to reduce import dependence and strengthen India's electronics and semiconductor manufacturing industry. Tata’s entry into this sector places it among the most significant semiconductor manufacturing companies in India, driving large-scale infrastructure development, employment generation, and long-term industrial growth.
The project also intersects with broader smart city investments, influencing property investment in India, land investment in India, and positioning Dholera among the most promising upcoming cities in India.
Tata Semiconductor Project Timeline (2024–2028)
- January 2024: Project Announcement
At the Vibrant Gujarat Global Summit 2024, the Tata Group announced plans to establish India’s first large-scale semiconductor fabrication plant in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). The integrated plan also included a semiconductor assembly and test (OSAT) facility in Jagiroad, Assam, forming a complete chip manufacturing value chain.
- February 29, 2024: Government Approvals
The Union Cabinet approved Tata Electronics’ semiconductor projects under the India Semiconductor Mission, clearing:
- ₹91,000 crore for the Tata Semiconductor fab in Dholera
- ₹27,000 crore for the Tata semiconductor plant in Assam
This approval marked one of the largest commitments to semiconductor manufacturing in India.
- March 13, 2024: Virtual Bhumi Pujan & Foundation Laying
On March 13, 2024, Prime Minister Narendra Modi virtually performed the Bhumi Pujan and laid the foundation stones for:
- The semiconductor fabrication facility in Dholera, Gujarat
- The OSAT (assembly & test) facility in Jagiroad, Assam
The combined investment of approximately ₹1.18–1.26 lakh crore positioned the project as a landmark mega-industry initiative within the Dholera Smart City project.
- August 3, 2024: Physical Bhumi Pujan & Construction Begins (Assam)
A physical Bhumi Pujan ceremony was held for the semiconductor assembly and test unit in Jagiroad, Assam, marking the start of on-ground construction.
Assam OSAT Highlights:
- Technologies: Wire Bond, Flip Chip, Integrated Systems Packaging (ISP)
- Target capacity: ~48 million chips per day
- Civil construction commenced immediately after the ceremony
The project aligns with the Government of India’s broader semiconductor and electronics manufacturing roadmap, aimed at building domestic capabilities and reducing import dependence through phased infrastructure development and technology partnerships.
- 2024–2025: Site Development & Civil Work
Dholera Semiconductor Fab
- Land preparation and core infrastructure development
- Clean rooms, utilities, and support facilities under construction
- Integration with Dholera Industrial Area, Dholera Solar Park, and smart city water management systems
Assam OSAT Facility
- Structural and foundation work progresses
- Local hiring and skill development initiatives begin
Connectivity through the Ahmedabad-Dholera Expressway and proximity to the Dholera International Airport further strengthened Dholera’s industrial readiness.
- Mid-2025 to Late-2025: Assam OSAT First Phase
The first operational phase of the Tata semiconductor plant in Assam is expected by mid-to-late 2025. This unit will begin chip assembly and testing, supporting India’s expanding electronics manufacturing industry.
- 2025–2026: Equipment Installation & Testing (Dholera)
During this phase:
- Advanced wafer fabrication tools are installed
- Clean-room systems and utilities are calibrated
- Trial runs and process validation begin
This stage is crucial for establishing Tata among the leading semiconductor fabs in India.
- Late 2026: Initial Commercial Production
The Tata Semiconductor fab in Dholerais expected to achieve its first commercial chip production by late 2026. Initial output will focus on:
- Power management ICs
- Microcontrollers
- Logic and automotive chips
The Assam OSAT facility is expected to scale output in parallel, serving both domestic and international markets.
- 2027–2028: Stabilisation & Ecosystem Expansion
By 2027–2028, production capacity is expected to stabilize and scale. Exploratory discussions related to Intel semiconductor manufacturing in India remain under evaluation, with no confirmed production timelines announced.
Tata Electronics has also indicated long-term expansion potential in Dholera, subject to approvals and market conditions.
Technology, Capacity, and Investment Snapshot
- Manufacturing Nodes: 28nm, 40nm, 55nm, 90nm, 110nm
- Dholera Fab Capacity: ~50,000 wafers per month
- Assam OSAT Capacity: ~48 million chips per day
- Total Investment: ~₹1.18 lakh crore
- Employment Impact: ~50,000 direct and indirect jobs
Why Dholera Matters Beyond Semiconductors
The rise of Tata Semiconductor has accelerated interest in:
- Dholera plots
- Dholera SIR investment
- Smart city investments
- Long-term property investment in India
Dholera’s importance goes far beyond semiconductors. While projects like Tata Semiconductor form the industrial anchor, the region is steadily developing a broader ecosystem that includes renewable energy, logistics and warehousing, and automotive and EV manufacturing. This multi-sector growth is supported by large-scale infrastructure such as the Ahmedabad–Dholera Expressway, proposed port connectivity, the Dholera Solar Park, and the upcoming Dholera International Airport. Together, these developments are shaping Dholera into a future-ready industrial hub for India.
Conclusion
Between 2024 and 2028, Tata Semiconductor’s journey marks a defining phase in India's semiconductor manufacturing. Backed by government policy, global technology partnerships, and advanced infrastructure at Dholera Smart City India, the project is set to play a central role in building a resilient and future-ready semiconductor ecosystem for India.
