India’s First Semiconductor Fab to Commence Production in 2026

India is set to witness the commencement of commercial production from its inaugural semiconductor fabrication unit by 2026, a significant step towards self-reliance in chip manufacturing. Tata Group‘s subsidiary, Tata Electronics Pvt. Ltd, plans to initiate chip production at its plant in Assam, starting with semiconductor chips at 28 nanometres.

The plant, slated to launch production by late 2025 or early 2026, will cater to a wide array of industries, including automotive, power, electronics, consumer goods, and the medical sector, aiming to address India’s chip manufacturing gap.

Ahead of this ambitious venture, a groundbreaking ceremony was held for three semiconductor fabrication units, which included Tata Electronics’ projects in Dholera, Gujarat, and an outsourced semiconductor assembly and test facility established by CG Power and Industrial Solutions Ltd in collaboration with Renesas Electronics Corp.

The total investment dedicated to these projects amounts to around 1.25 trillion rupees, signifying a substantial stride towards boosting India’s chip manufacturing capabilities and reducing dependence on global supply chains.

India is also exploring a separate semiconductor fab project proposed by Israel’s Tower Semiconductor, reflecting the country’s concerted efforts to bolster its semiconductor industry.

The partnership between Tata Electronics and Powerchip Semiconductor Manufacturing Corp (PSMC) holds promise for the advancement of India’s semiconductor segment, aiming to generate over 50,000 job opportunities across various sectors.

Industry experts, including Ashok Chandak of the Indian Electronics and Semiconductor Association, have expressed overwhelming support for Tata Group’s endeavors, emphasizing their role in transforming India into a global semiconductor hub.

Ajai Chowdhry, a renowned figure in the tech industry and member of the advisory committee of the Indian Semiconductor Mission, highlighted that India’s progress towards commercial production in the semiconductor domain positions the country as a formidable player on the global semiconductor stage.

These developments underscore the importance of domestic semiconductor manufacturing for India’s economic growth, technological self-sufficiency, and strategic significance in the global tech landscape, marking a new chapter in the country’s technological journey.