India’s semiconductor ambitions are taking shape as Tata Electronics prepares to manufacture the country’s first semiconductor wafers at its upcoming fabrication plant in Dholera, Gujarat. However, the company is expected to begin production with 90nm process technology instead of the 28nm technology that was initially highlighted as the starting point of its chipmaking journey.
According to people familiar with the matter, the facility will initially focus on 90nm technology, which is widely used in industrial equipment and automotive applications. A spokesperson for Tata Electronics clarified that the Dholera fab is designed to manufacture chips ranging from 28nm to 110nm. The company stated that production was always planned to begin with 55nm and 90nm technologies before moving to 28nm, which will remain an important part of its portfolio.
Tata Electronics has partnered with Taiwan-based Powerchip Semiconductor Manufacturing Corp. (PSMC) for the project. PSMC also said that introducing multiple technology platforms gradually, beginning with mature nodes, is a standard industry approach.
The project highlights the complexity of establishing a domestic semiconductor manufacturing ecosystem. Despite Tata Group’s extensive manufacturing experience, chip fabrication presents new technical and operational challenges.
The development comes after the Government of India approved ₹1.28 trillion ($13.3 billion) in fresh incentives for semiconductor design, manufacturing equipment and supply chain development. These incentives will apply only to future investments and are separate from the earlier $10 billion semiconductor incentive programme announced in 2021, which supported projects including Tata’s planned $10.7 billion Dholera fabrication facility.
Earlier, Tata Group Chairman Natarajan Chandrasekaran had said, “We have chosen to start our chip journey at the 28nm node – it is a stable node,” while outlining the company’s long-term semiconductor roadmap.
Meanwhile, India’s Technology Minister Ashwini Vaishnaw said the Dholera semiconductor plant is now expected to begin commercial operations by mid-2028, compared to the earlier target of the end of 2026.
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