🇮🇳GoI powering semiconductor advancements in India with fiscal support!

FSA has been signed in the presence of Gujarat CM Shri Bhupendrabhai Patel between ISM, TEPL, and TSMPL for Semiconductor Fab project worth ₹91,526 Cr. in Dholera, Gujarat with a capacity of 50,000 WSPM.🚀 pic.twitter.com/P3k6keffDv

— India Semiconductor Mission (@Semicon_India) March 5, 2025

In a significant milestone for India's semiconductor industry, 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. This breakthrough agreement represents a decisive step forward in strengthening India's technological self-reliance under the modified programme for semiconductor & display manufacturing ecosystem in India.

50% Fiscal support for eligible project

Tata Electronics’ semiconductor fab in the Dholera (SIR) commands a total investment of over ₹91,000 crore with a capacity of 50,000 wafers starts per month (WSPM). The Government of India, through the India Semiconductor Mission, has committed 50% fiscal support on a pari-passu basis for eligible project costs—demonstrating unwavering national commitment to building a world-class semiconductor ecosystem within Indian borders.

India as a global manufacturing powerhouse

Set to generate over 20,000 direct and indirect skilled jobs, this groundbreaking project brings Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) expertise to India, creating a powerful technological alliance. 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.

Shri Sushil Pal, CEO of the India Semiconductor Mission, emphasized that “the Government of India is committed to the timely disbursement of fiscal support for the execution of this project. 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."

Dr Randhir Thakur, CEO and MD, Tata Electronics, said, “This is a historic milestone for India and Tata Electronics in its journey of establishing a semiconductor manufacturing industry in India. 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’. We are grateful to the MeitY and ISM leadership for their unwavering support and resolve in not only defining but operationalizing a globally leading subsidy framework through this FSA. With construction being undertaken with a great sense of urgency, Tata Electronics is deeply committed to building India’s first AI enabled Fab in Dholera.”

Expansion of the country's semiconductor industry

By advancing semiconductor manufacturing and creating employment opportunities, this project will drive technological innovation and deliver substantial contributions to India's economic growth. It establishes India as a reliable partner in building resilient, efficient, and sustainable global semiconductor supply chains.

The strategic fiscal support from the Government of India will accelerate the transformative expansion of the country's semiconductor industry, positioning India as a key player on the global semiconductor stage and launching a new era of technological self-reliance for the nation.

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Dharmendra Tewari/ Navin Sreejith

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