After First Semiconductor Fab, Tata Electronics Plans Two More Facilities At Gujarat's Dholera — Here's What We Know So Far

Tata Electronics plans to establish two more semiconductor fabs in Gujarat's Dholera as the company wants to produce chips locally and cater to global demand in the long term, people aware of the matter told LiveMint.

Tata is in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) for the Rs 91,000-crore plant in the first phase at Dholera, India's first semiconductor fab expected to start rolling out chips by 2026.

However, the partnership for the second and third fabs and their timelines have not been decided yet. It is expected that the next phase of fabs will begin production in five to seven years and will be at the same scale as that of the first one.

"The nodes and technology will be decided once the first fab is at full capacity and will depend on the global demand and technology development within the semiconductor industry," a person was quoted as saying.

According to a senior government official, groundwork is currently underway for the first semiconductor fabrication plant. Tata Electronics began construction at the Dholera Special Investment Region in March.

The company is in the process of determining the installation capacity required to test equipment and establish a pilot production line before transitioning to commercial manufacturing.

A senior executive explained that since the fab will be producing chips across various nodes, certain infrastructure could be shared among all three fabs and may be built during the initial phase.

As a result, while future phases will still require significant investment, it is unlikely to match the multi-billion-dollar outlay for the first fab. Tata is negotiating with buyers for the chips produced from the first fab.