Tata, ISM Ink Fiscal Support Agreement for Dholera Semiconductor Fab

In a key development for India's semiconductor sector, the India Semiconductor Mission (ISM), Tata Electronics Pvt Ltd (TEPL), and Tata Semiconductor Manufacturing Pvt Ltd (TSMPL) have entered into a Fiscal Support Agreement (FSA) with Chief Minister of Gujarat Shri Bhupendra Patel present for the launch of India’s first commercial semiconductor fab in Dholera, Gujarat.

This landmark agreement signifies a significant advancement in enhancing India’s technological independence within the revamped programme for the semiconductor and display manufacturing ecosystem in India.

Tata Electronics' semiconductor factory in Dholera (SIR) commands a total investment exceeding ₹91,000 crore and has a capacity of 50,000 wafers starts per month (WSPM). The Government of India, via the India Semiconductor Mission, has pledged 50% financial support on a pari-passu basis for qualifying project expenses—showing national dedication to creating a world-class semiconductor ecosystem within India.

Set to create more than 20,000 direct and indirect skilled jobs, this innovative initiative introduces Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) expertise to India, forming a strong technological partnership. The facility will target essential global semiconductor markets in automotive, computing, communications, and artificial intelligence industries—turning India from a technology consumer into a major manufacturing force.

This project will foster technological innovation and significantly boost India's economic growth by enhancing semiconductor manufacturing and generating job opportunities. It positions India as a trustworthy partner in creating robust, efficient, and sustainable global semiconductor supply networks. 

The government of India’s strategic financial backing will expedite the transformative growth of the nation’s semiconductor sector, establishing India as a crucial participant in the global semiconductor stage and launching in a new phase of technological self-reliance for the country.