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 In a landmark move for India's tech industry, Tata Electronics Private Limited (TEPL), Tata Semiconductor Manufacturing Private Limited (TSMPL), and the India Semiconductor Mission (ISM) have entered into a Fiscal Support Agreement (FSA) for India’s first commercial semiconductor fabrication unit in Dholera, Gujarat.

The agreement was signed during the Gujarat SemiConnect Conference 2025, in the presence of Chief Minister Bhupendra Patel. This massive ₹91,000 crore investment will position Dholera as a core hub for advanced semiconductor manufacturing, with a monthly capacity of 50,000 wafer starts (WSPM).

The Government of India, via ISM, has committed to providing 50% fiscal support on a pari-passu basis, emphasizing its dedication to building a resilient semiconductor ecosystem. The project is expected to generate over 20,000 skilled and semi-skilled jobs, directly and indirectly.

Tata's venture is backed by technical collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), promising to transform India into a serious global player in sectors such as automotive, computing, telecom, and AI.

Sushil Pal, CEO of ISM, said, “The Government is committed to timely disbursal of financial aid to make this project a success, reinforcing our goals of indigenous chip manufacturing.”

Dr. Randhir Thakur, CEO & MD of Tata Electronics, noted, “This agreement is a crucial milestone in fulfilling the Prime Minister’s vision of 'Chips for Viksit Bharat.' Construction has already begun, and we're determined to deliver India's first AI-powered semiconductor fab.”

The Gujarat SemiConnect Conference also featured the signing of eight additional MoUs in the semiconductor sector, unveiling a new era of technological partnerships in India.