India Semiconductor Mission and Tata Sign Fiscal Pact for Gujarat Chip Plant
ECONOMY & POLICY

India Semiconductor Mission and Tata Sign Fiscal Pact for Gujarat Chip Plant

The India Semiconductor Mission (ISM) and Tata Group’s subsidiaries, Tata Electronics and Tata Semiconductor Manufacturing, have finalised a fiscal support agreement for the upcoming semiconductor facility in Gujarat.

Tata Electronics has pledged an investment exceeding Rs 910 billion to establish a semiconductor fabrication unit in Dholera Special Investment Region (SIR). The facility will have a production capacity of 50,000 wafer starts per month (WSPM). The project has received government backing, with the central government, through ISM, providing 50 per cent fiscal support on a pari-passu basis for eligible project costs.

The agreement was signed in the presence of Gujarat’s Chief Minister Bhupendra Patel, marking a significant milestone in India’s semiconductor manufacturing ambitions. The cabinet had previously approved Tata’s investment proposal in February last year.

The semiconductor plant is expected to create over 20,000 skilled jobs, both directly and indirectly. Tata Electronics has collaborated with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) for technical expertise and manufacturing support.

Once operational, the facility will cater to crucial global semiconductor markets, including automotive, computing, communications, and artificial intelligence. This initiative positions India as a key player in semiconductor manufacturing, shifting its role from a technology consumer to a global production hub.

News source: Business Standard

The India Semiconductor Mission (ISM) and Tata Group’s subsidiaries, Tata Electronics and Tata Semiconductor Manufacturing, have finalised a fiscal support agreement for the upcoming semiconductor facility in Gujarat. Tata Electronics has pledged an investment exceeding Rs 910 billion to establish a semiconductor fabrication unit in Dholera Special Investment Region (SIR). The facility will have a production capacity of 50,000 wafer starts per month (WSPM). The project has received government backing, with the central government, through ISM, providing 50 per cent fiscal support on a pari-passu basis for eligible project costs. The agreement was signed in the presence of Gujarat’s Chief Minister Bhupendra Patel, marking a significant milestone in India’s semiconductor manufacturing ambitions. The cabinet had previously approved Tata’s investment proposal in February last year. The semiconductor plant is expected to create over 20,000 skilled jobs, both directly and indirectly. Tata Electronics has collaborated with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) for technical expertise and manufacturing support. Once operational, the facility will cater to crucial global semiconductor markets, including automotive, computing, communications, and artificial intelligence. This initiative positions India as a key player in semiconductor manufacturing, shifting its role from a technology consumer to a global production hub. News source: Business Standard

Next Story
Infrastructure Urban

Indian Delegation Visits South Africa for Trade and Investment Talks

A nine-member Indian delegation participated in the second session of the India-South Africa Joint Working Group on Trade and Investment (JWGTI) held in Pretoria from 22 to 23 April 2025. Discussions were conducted in a cordial atmosphere, focusing on expanding trade ties, boosting investments, and fostering greater people-to-people exchanges. The meeting was co-chaired by Malose Letsoalo, Chief Director, Bilateral Trade Relations, Department of Trade, Industry and Competition of South Africa, and Priya Nair, Economic Adviser, Department of Commerce, India. Delegates from the High Commission ..

Next Story
Infrastructure Urban

Ministry of Cooperation Inaugurates NCOL Organic Packaging Facility

The Ministry of Cooperation inaugurated a new state-of-the-art packaging facility of National Cooperative Organics Limited (NCOL) in Noida, Uttar Pradesh. The centre is dedicated to packaging pulses and organic products while maintaining high hygiene and quality standards. Dr Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, called the facility a major milestone in promoting the Bharat Organics brand. The initiative aims to empower farmers and expand access to certified organic produce across India, while offering premium prices to farmers and affordable organic food to consumers. Un..

Next Story
Infrastructure Urban

Adani Airport Seeks $750 Million Loan from Global Banks

Adani Group is in discussions for an offshore loan of up to $750 million for its airport arm, Adani Airport Holdings Limited, with international banks such as Barclays Plc, First Abu Dhabi Bank PJSC, and Standard Chartered Bank Plc. The funds will support capital expenditure and repay dollar-denominated debt maturing in September. The deal is expected to conclude by early May. Adani Airport Holdings Limited operates seven major airports across India and is preparing to open a new international hub worth $two billion on the outskirts of Mumbai. This would be the Group’s second significant o..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?