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Tata Electronics Begins Construction of India’s First Semiconductor Fab in Gujarat

Tata Electronics Begins Construction of India’s First Semiconductor Fab in Gujarat

On June 16, 2025, Tata Electronics officially commenced work on India’s first semiconductor fabrication plant in Dholera, Gujarat—a significant milestone in the nation’s electronics and high-tech manufacturing journey. With an investment of around USD 10580 million, the facility is expected to begin chip production by December 2026, according to Union IT Minister Ashwini Vaishnaw.

Located near Ahmedabad, the Dholera facility is a pivotal step in India’s ambition to achieve self-reliance in semiconductor manufacturing. The project will play a crucial role in reducing dependence on imported chips while positioning the country as a key player in the global semiconductor value chain. The fab is projected to create over 20,000 skilled jobs, directly and indirectly, once operational.

To support this massive undertaking, the Gujarat government is facilitating the development of 1,500 residential units to accommodate Tata employees, suppliers, vendors, and international partners. This initiative is part of a larger vision to transform the Dholera Special Investment Region (DSIR) into a global hub for electronics manufacturing.

Mona Khandhar, Principal Secretary of Gujarat’s Department of Science and Technology, clarified that the government is not directly building these residential units. “Private developers are executing the construction on auctioned plots through a special purpose vehicle established by the state,” she explained.

Currently, 275 apartments have been completed, with 250 already occupied by Tata staff and ecosystem partners. An additional 225 units are nearing completion, and 1,000 more are under construction, scheduled for completion by February–March 2026. Tata Electronics is also developing its own housing complex on a 10-acre site, which will contribute an additional 530 apartments by mid-2027.

The residential offerings include one, two, and three-bedroom serviced apartments located close to the fabrication facility, ensuring convenience and reducing commute times for employees.

Beyond housing, the Gujarat government is also building vital civic infrastructure to support the growing township. Planned amenities include a fire station, school, hospital, desalination plant, hotel, and a premium shopping mall. A standout feature is the upcoming ‘Global Tent City’—a multicultural hub featuring culinary streets inspired by Taiwan, South Korea, Japan, the US, and Europe—designed to help expatriates feel more at home.

“As Tata is the anchor investor, coordination is carried out with them as needed to ensure alignment of efforts,” added Khandhar.

The Dholera semiconductor fab marks a turning point for India’s tech landscape. By establishing advanced chipmaking capabilities, it strengthens the nation’s global competitiveness while laying the foundation for a modern, innovation-driven township in Gujarat.

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