Blitz India Business
India’s first commercial chip fab — Tata Electronics with Taiwan’s PSMC at Dholera, Gujarat — has crossed the halfway mark in construction and is targeting first silicon by late 2026. The roughly ₹91,000 crore (about $11 billion) plant is designed for up to 50,000 wafers a month.
Production is set to start on 28-nanometre nodes and progress to 22nm, serving electric vehicles, telecom, automotive and power electronics, and is expected to support more than 20,000 skilled jobs. It anchors a wider build-out under the India Semiconductor Mission: Micron and Kaynes Semicon assembly-and-test units are already live at Sanand, with four plants slated to be operational by end-2026 and two more in 2027.
A fab is the heaviest bet in the value chain — long-cycle capital that only pays once yields, talent and supply chains line up together.
The investment case is real but demanding: India still imports most chipmaking tools and materials, and front-end fabrication rewards scale, reliability and patient capital. Water and power reliability, yield ramps and a deep talent pool are the operational tests ahead.
The constructive read is that India is adding the heaviest link of the chip value chain to an assembly base already running. For suppliers, contractors and engineers, Dholera is the anchor tenant around which an ecosystem can form.