Ratan Tata company’s mega support to India’s semiconductor mission, commits Rs 910000000000 crore to set up…, sign pact with…

Tata's semiconductors fab is expected to generate over 20,000 direct and indirect skilled jobs.

The India Semiconductor Mission (ISM) and Tata Group companies, Tata Electronics and Tata Semiconductor Manufacturing have signed a fiscal support agreement for the semiconductor facility in Gujarat, according to an official statement on Wednesday. 

Tata Electronics has pledged an investment exceeding Rs 91,000 crore to establish a semiconductor fabrication unit in Dholera Special Investment Region (SIR), with a production capacity of 50,000 wafer starts per month (WSPM). The Indian government, through the ISM, has committed to providing 50% fiscal support on a pari-passu basis for eligible project costs.

“India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) have signed a Fiscal Support Agreement (FSA) in the presence of Chief Minister of Gujarat Shri Bhupendra Patel for India’s first commercial semiconductor fab in Dholera, Gujarat,” the statement said.

The cabinet had approved Tata’s investment proposal in February last year. The company has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) for the plant.

The facility will address critical global semiconductor markets in automotive, computing, communications, and artificial intelligence sectors — transforming India from a technology consumer into a global manufacturing powerhouse.

“This initiative underscores India’s ambitions in indigenous semiconductor manufacturing. We are confident that Tata Electronics will play a pivotal role in strengthening the electronics value chain and make a significant contribution to India’s overarching goals in this sector,” Sushil Pal, CEO of the India Semiconductor Mission said.

“The Fiscal Support Agreement (FSA) solidifies our partnership with MeitY and ISM to realize our Hon’ble Prime Minister’s vision of manufacturing ‘Chips for Viksit Bharat’,” Tata Electronics, CEO and MD, Randhir Thakur said. 

(With inputs from PTI)