India's Semiconductor Mission: Tata-TSMC Fab in Gujarat to Begin Production by 2028

India's semiconductor ambitions took a massive leap forward as Tata Group and Taiwan Semiconductor Manufacturing Company (TSMC) finalized their $20 billion joint venture to build India's first commercial semiconductor fabrication plant in Dholera, Gujarat.

The facility will produce 28nm and 45nm chips primarily for automotive, industrial IoT, and consumer electronics applications. Construction begins in Q4 2026 with first silicon expected by mid-2028. India currently imports 100% of its semiconductor chips, spending over $25 billion annually. The Dholera fab aims to capture 15% of India's domestic chip demand within 3 years of production.

"This partnership marks India's arrival on the global semiconductor map. With Tata's industrial expertise and TSMC's world-class fabrication technology, we're building the foundation for India's electronics manufacturing revolution."

— Ashwini Vaishnaw, Union IT Minister

The Indian government is providing $10 billion in production-linked incentives (PLI) and infrastructure subsidies. Tata will own 60% of the joint venture, while TSMC holds 30% equity and provides technology licensing. The remaining 10% is held by government investment arms. The fab comes at a critical time as global supply chains diversify away from Taiwan and South Korea. India's semiconductor policy aims to have 3-5 operational fabs by 2032, positioning the country as a viable alternative in the global semiconductor ecosystem. The Dholera fab will also include a design center, testing facility, and semiconductor workforce training institute in partnership with IIT Gandhinagar.