The buildings that will host India’s first commercial chip factory are taking shape. The $11 billion project is a partnership between Tata Group, and Powerchip, a Taiwanese manufacturer of semiconductors, according to an article in the The Economist
For the moment Tata’s factory (which sits in a “special investment region”, called Dholera in Gujarat) is the only one of the new projects that will attempt to do that. It will not be minting cutting-edge semiconductors of the kind that stream from fabs in Taiwan. Yet the workhorse products it produces will nonetheless find plenty of uses, such as in vehicles, white goods and entry-level smartphones. Many of them may wind up in Tata’s own cars.
According to the company, Tata Electronics (a wholly owned subsidiary of Tata Sons Pvt. Ltd.) in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) will build India’s first AI-enabled state-of-the-art Fab. This Fab will have manufacturing capacity of up to 50,000 wafers per month and will include next generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency.
The new semiconductor Fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers and high-performance computing logic, addressing the growing demand in markets such as automotive, computing and data storage, wireless communication and artificial intelligence. The partnership with PSMC provides access to a broad technology portfolio in leading edge and mature nodes including 28nm, 40nm, 55nm, 90nm & 110nm and also collaboration for high volume manufacturing.
Last updated: December 26th, 2025
