Blitz India Business
NEW DELHI: Lead with the capital at work. India’s first commercial chip fab — built at Dholera in Gujarat by Tata Electronics with Taiwan’s PSMC at a cost of about ₹91,000 crore — is on course to roll out its first Made-in-India chip by end-2026, the government has said. The debut device will be a 28-nanometre chip on a line designed for up to 50,000 wafers a month, aimed at power-management and logic parts for electric vehicles, telecom, defence and consumer electronics. For a country that has imported almost all of its chips, first silicon is a genuine industrial milestone.
Read why the node choice is shrewd rather than modest. Mature process technology — 28nm and above — accounts for a large, durable share of global chip demand and powers most cars, appliances and industrial systems. Starting there, with an experienced foundry partner, lets India build yield, supply-chain and workforce competence on proven ground before reaching for finer geometries. Alongside the fab, an assembly-and-test plant at Sanand and other India Semiconductor Mission projects are adding the packaging and materials layers a real industry needs.
Capacity as strategy: A ~₹91,000 cr Tata–PSMC fab, first chip targeted by end-2026 at 28nm, with capacity for 50,000 wafers a month — the anchor of a domestic chip supply chain.
The value in semiconductors is not one chip but the ecosystem it seeds — suppliers, packaging, talent and the customers who no longer have to import.
By the Numbers
• Investment: ~₹91,000 cr Tata Electronics–PSMC fab at Dholera
• First chip: 28nm, targeted by end-2026
• Capacity: up to 50,000 wafers a month
• Ecosystem: Micron ATMP at Sanand; wider Semiconductor Mission projects
For investors, the semiconductor theme is still early and capital-intensive, but the direction is clear: a national mission with fiscal support, anchor demand from India’s fast-growing electronics and EV manufacturing, and a global push to diversify chip supply chains away from a handful of geographies. The milestones to track are unglamorous — first-chip timing, yield ramp, capacity utilisation, and the order books of downstream device-makers — rather than any single ribbon-cutting.
The constructive read is that this is patient, capability-building industrial policy: it invests in essential domestic capacity and lets an ecosystem grow around it. The way forward is execution discipline — hit the first-chip milestone, climb the yield curve, and deepen the supplier and talent base — so that a ₹91,000-crore bet matures into a self-reinforcing industry and, over time, a smaller import bill for one of the economy’s most strategic inputs.