India's first AI-enabled semiconductor fabrication plant has officially started construction in Dholera, Gujarat, marking a significant milestone for the nation's semiconductor industry. This Rs 910 billion project, led by Tata Electronics in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), aims to make India a key player in the global semiconductor supply chain. Highlights • Location and investment: The fab will be situated in Dholera, a key industrial zone within the Delhi-Mumbai Industrial Corridor, with an investment of Rs 910 billion. The facility is expected to produce 50,000 wafers per month and begin operations by 2026. • Technology and capabilities: The plant will feature AI-enabled systems and next-gen factory automation tools, focusing on microchip production for sectors like automotive, AI, data storage, and wireless communications. It will manufacture semiconductors with transistor sizes from 110nm to 28nm. • Job creation: The project is set to create over 20,000 skilled jobs, contributing significantly to Gujarat's economic growth.

Gujarat has emerged as the ideal location for India’s semiconductor revolution due to several strategic advantages: • Policy support: The state offers financial incentives, including a 40% capital expenditure subsidy and land subsidies for semiconductor projects. • Infrastructure: Dholera’s location in the Special Investment Region (SIR) ensures access to essential resources such as land, power, and water, which are crucial for semiconductor manufacturing. • Energy and water: With a robust power infrastructure and ongoing investments in desalination plants, Gujarat ensures a steady supply of energy and ultrapure water for chip production.

In addition to the Dholera facility, Tata Electronics is constructing a semiconductor assembly and testing plant in Jagiroad, Assam, with a Rs 270 billion investment, which will further bolster India's semiconductor ecosystem and create over 27,000 jobs. The Dholera fab is expected to reshape the global semiconductor supply chain, as India positions itself as an alternative to traditional manufacturing hubs.

Dholera's proximity to major cities like Ahmedabad, Surat, and Baroda enhances its connectivity, making it an attractive destination for semiconductor companies. Ongoing infrastructure projects, such as a new airport, expressway, and semi-high-speed rail line, will further drive economic growth in the region.

Gujarat is quickly becoming the country's semiconductor epicenter, with investments from global players like Micron Technology and Murugappa Group setting up assembly and testing plants in Sanand, near Ahmedabad. The state's proactive policies, strong infrastructure, and competitive advantages make it a prime location for semiconductor projects in India.

The construction of India’s first semiconductor fab is a major step toward reducing reliance on foreign chip manufacturers. With significant investments and a supportive policy framework, Gujarat is poised to become a global semiconductor production hub, boosting India’s technological capabilities, creating jobs, and strengthening the domestic manufacturing ecosystem. (newsx)