India Builds First Large-Scale Chip Fab in Dholera, Gujarat

• India’s first commercial wafer fab at Dholera aims for 50,000 wafer starts monthly.
• Six semiconductor units, including one fab and five packaging facilities, are advancing swiftly.
• Global vendors Applied Materials and Lam Research are establishing local support and validation hubs.

India is now taking a historic leap into global semiconductor manufacturing with its first commercial-scale silicon fabrication facility (fab) at Dholera, Gujarat. The project, spearheaded by Tata Electronics in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), received approval in February 2024 and has since been fast-tracked.

It commands a massive investment of ₹91,000 crore (approx. US$11 billion) and promises to generate over 20,000 skilled direct and indirect jobs. At full capacity, the Dholera fab will produce up to 50,000 wafer starts per month, surpassing the industry norm of 20,000–40,000 wafers per month.

Construction is already underway, with operations expected to commence by late 2026. The facility will manufacture a variety of chips power management ICs, display drivers, microcontrollers, and high-performance computing logic targeting leading-edge sectors such as automotive, AI, telecom, and data storage. Supporting ecosystem elements are also taking shape: Electronics and IT minister Ashwini Vaishnaw recently confirmed that six semiconductor units including this fab and five Assembly, Testing, Marking, and Packaging (ATMP) facilities are in various stages of planning, construction, and execution.

Also Read: PTC, Kineco Aerospace Ink MoU for Advanced Aerospace Component

Moreover, just last week, four more projects received the green light: one additional silicon carbide fab and three advanced ATMP units. Complementing this momentum, major semiconductor equipment suppliersApplied Materials and Lam Research are establishing design, production, and validation facilities in India to serve the growing domestic ecosystem. Lam Research, specifically, plans to set up an onsite support office near the Dholera fab for real‑time collaboration.

Prime Minister Modi had previously pledged, in his August 2025 Independence Day address, that India would produce the first "Made in India, Made by Indians" chips before year-end—underscoring the country’s escalating commitment to tech self-reliance.