Tata fab at Dholera
The Tata fab at Dholera is India's first large commercial semiconductor fabrication plant, a partnership between Tata Electronics and Taiwan's PSMC approved by the Union Cabinet on 29 Feb 2024 under the India Semiconductor Mission. It carries a reported investment of Rs 91,000 cr (about US$11B, with the PIB Fiscal Support Agreement citing Rs 91,526 cr) and a target capacity of up to 50,000 wafers per month on 300 mm wafers. As of mid-2026 it is under construction, with first trial silicon targeted around December 2026 and commercial-scale production reported for about mid-2028.
Who is building the Dholera fab
The plant is a joint effort between Tata Electronics, part of the Tata Group, and Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan, an experienced foundry partner. The project runs through a dedicated entity, Tata Semiconductor Manufacturing Pvt Ltd. Tata brings capital, land, project execution and long-term intent, while PSMC contributes proven process technology and the operational know-how of running a foundry, which is the part that takes years to build from scratch. This division of roles matters because a fab is not just a building full of machines. It is a tightly tuned recipe of thousands of process steps, and buying that expertise through a partner shortens the path to working chips. The fab is being built under the India Semiconductor Mission, the central programme that offers fiscal support covering 50 percent of eligible project cost for approved fabs, which is a major reason the economics of a first-of-its-kind Indian plant work at all.
The numbers behind the project
The headline investment is Rs 91,000 cr, roughly US$11B, and the PIB Fiscal Support Agreement cites a figure of Rs 91,526 cr. This is the single largest and best-sourced private commitment in the Dholera pipeline, and it should be treated as the anchor figure rather than blended with softer estimates. The Union Cabinet approved the project on 29 Feb 2024, and the Fiscal Support Agreement was signed on 5 Mar 2025. Ground-breaking took place in March 2024. On employment, the fab is associated with more than 20,000 direct and indirect jobs, and the Tata Group's wider multi-fab vision cites around 100,000 jobs as a longer-term target, which should be read as an aspiration rather than a committed figure. A 66-hectare Tata Semiconductor SEZ in Dholera was reported notified in April 2026, giving the project a defined special economic zone footprint.
Capacity, wafer size and what that means
The fab is designed for up to 50,000 wafers per month, using 300 mm wafers. Wafer size is a practical detail with big consequences. A 300 mm wafer is the industry standard for high-volume manufacturing because its larger surface holds more chips per wafer, which lowers the cost of each finished chip. Fifty thousand wafers a month places Dholera in the high-volume tier of fabs worldwide, not a pilot line. If each wafer carries hundreds of individual chips, a fab at full capacity supplies hundreds of millions of chips a year. That scale is what justifies the enormous fixed cost of a fab, since the building, cleanrooms and tools cost roughly the same whether they run half full or completely full, so utilisation is everything. Reaching that full capacity takes time, which is why the timeline separates first trial silicon from commercial-scale ramp.
Process nodes and products
The Dholera fab targets mature and specialty nodes rather than the smallest leading-edge geometries. The reported node range covers 28, 40, 55, 90 and 110 nm. Company statements make clear the plan was always to begin at a mature node, first 55 nm and 90 nm, and then progress to 28 nm, so the earliest output will come from a mature process, not from 28 nm. The named product categories are power-management integrated circuits, display driver chips, microcontrollers and high-performance computing logic. These chips run cars, home appliances, industrial machinery, screens and communication gear, a huge and durable market. Choosing mature nodes is a deliberate strategy. Demand is steady, the process is well understood, yields are easier to achieve, and the tools and skills built here create the foundation a country needs before it attempts leading-edge production. It is the same path most successful chip nations followed.
Construction status in 2026
As of mid-2026, major structural and civil work is reported complete, with cleanroom fit-out and equipment move-in underway. This is a step beyond the roughly 50 percent civil figure that was current in April and May 2026 and still circulates on aggregator sites, so the newer status of structural complete with cleanroom install started should be labelled reported rather than certified. Some trade coverage, including Digitimes in April 2026, has noted leadership changes and engineering challenges, which are worth noting as a risk rather than treated as established fact. The sequence from here is standard for any fab. Once the cleanroom shell is sealed and certified, the process tools are installed, connected to ultrapure water, gases, chemicals and power, then calibrated and qualified. Only after that qualification can the first wafers run through the full process flow to produce trial silicon.
The ASML partnership and timeline
Tata Electronics signed a lithography partnership with ASML, the global leader in lithography systems, reported around 17 May 2026 and now confirmed on Tata Electronics' own press page rather than resting on a press MoU alone. Lithography is the step that prints circuit patterns onto the wafer, and it is the most complex and expensive equipment in a fab, so securing a leading supplier is a meaningful milestone. On timing, first silicon, meaning the first trial wafers, is targeted around December 2026, a date attributed to Minister Ashwini Vaishnaw and to the project's CEO and MD Dr Randhir Thakur. Commercial-scale production is reported to be pushed to about mid-2028. No source confirms a chip has been produced yet, so every one of these dates should be presented as a target. The airport, expressway and semi-high-speed rail arriving in the same window are designed to serve the fab and the wider industrial city around it.
FAQ
Who owns and runs the Tata fab at Dholera?
It is a partnership between Tata Electronics and Taiwan's PSMC, operated through Tata Semiconductor Manufacturing Pvt Ltd. Tata provides capital and execution, while PSMC contributes proven foundry process technology. It is built under the India Semiconductor Mission, which covers 50 percent of eligible project cost for approved fabs.
How much is the Tata Dholera fab investment?
The reported investment is Rs 91,000 cr, roughly US$11B, and the PIB Fiscal Support Agreement cites Rs 91,526 cr. It is the single largest and best-sourced private commitment in the Dholera pipeline, and it should be kept separate from smaller units and softer cumulative estimates.
When will the Tata fab start making chips?
First trial silicon is targeted around December 2026, and commercial-scale production is reported for about mid-2028. No source confirms a chip has been produced yet, so both dates are targets. Production is planned to start at mature nodes, 55 nm and 90 nm, before moving to 28 nm.
What is the fab's production capacity?
The fab is designed for up to 50,000 wafers per month on 300 mm wafers, which places it in the high-volume tier of fabs. Reaching full capacity takes time after the first trial wafers, which is why the timeline separates first silicon from commercial-scale ramp.
How many jobs will the Dholera fab create?
The fab is associated with more than 20,000 direct and indirect jobs. Tata's wider multi-fab vision cites around 100,000 jobs, which is a longer-term target rather than a committed figure. A separate pair of semiconductor units cleared on 5 May 2026, one in Dholera and one in Surat, add more than 2,200 skilled jobs.