Tata Semiconductor Fab Dholera: the Rs 91,000 crore anchor

Every other Dholera project borrows its logic from this one. The airport needs freight to carry, the expressway needs traffic to move, the housing plans need workers to house. The semiconductor fab is the anchor that is supposed to supply all of it. So the honest question is not whether the fab is impressive on paper, it clearly is, but how far along it actually is and which parts are built versus promised.

This page gives you the sourced status with confidence labels. A confirmed government approval and a targeted first chip are two very different things, and on a project this size the difference is the whole story.

What has actually been approved

The fab is a Tata Electronics project built with process technology from Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan. The Union Cabinet approved it on 29 February 2024 under the India Semiconductor Mission (ISM), and the operating entity is Tata Semiconductor Manufacturing Pvt Ltd. This is a confirmed, centrally backed project, not a memorandum. The investment figure is Rs 91,000 crore, roughly 11 billion US dollars. The PIB Fiscal Support Agreement, which was signed on 5 March 2025, cites Rs 91,526 crore, and the ISM framework covers 50 percent of the eligible project cost. We tag all of that confirmed.

How big and what it will make

Capacity is planned at up to 50,000 wafers per month on a 300mm line. PSMC provides the technology transfer, with a debut node of 28nm and a wider portfolio spanning 28, 40, 55, 90 and 110 nanometre mature and specialty processes. The intended products are power-management ICs, display drivers, microcontrollers and high-performance computing logic. These are the workhorse chips that go into cars, appliances, phones and industrial equipment, not the bleeding-edge logic made in Taiwan or Korea. That is a deliberate and realistic positioning for a first Indian commercial fab.

A strategic partnership with ASML, the Dutch maker of the lithography systems every advanced fab depends on, was announced by Tata Electronics on 16 May 2026 to deploy ASML lithography tools at the fab. That is a confirmed announcement and a meaningful signal about the seriousness of the equipment pipeline.

Where construction actually stands

As of April 2026, civil construction is reported to be around 50 percent complete, with the project moving toward cleanroom and equipment integration. That is a reported figure from press coverage, not a primary completion certificate, so we tag it reported. The first chip is a target, not an achievement. Trial production has been targeted for December 2026 by the minister for electronics and IT, and no source confirms that a wafer has actually been produced yet. Read December 2026 as a goal the project is working toward.

Vedanta-Foxconn is dead, do not confuse the two

Search results still surface an older Dholera chip story, a Vedanta-Foxconn joint venture signed as a memorandum in September 2022 with a headline figure around 19.5 billion US dollars. That project was never built. Foxconn formally withdrew from the joint venture on 10 July 2023, and the plan collapsed. Any current article describing a live Vedanta-Foxconn fab at Dholera, sometimes quoting a Rs 1.54 lakh crore figure, is stale and should be excluded. The live, approved, under-construction fab is the Tata and PSMC project described on this page, and it is a completely separate effort.

Jobs, the SEZ and the wider ecosystem

Employment from the fab is targeted at more than 20,000 direct and indirect jobs, with a longer multi-fab vision sometimes cited near 100,000. Those are targets tied to full build-out, not current headcount. A semiconductor Special Economic Zone of roughly 66.166 hectares was reportedly notified in April 2026 to house the fab and its suppliers, which we tag reported pending confirmation against the government notification. The fab also sits inside the wider push around the India Semiconductor Mission and the expanded Electronics Components Manufacturing Scheme, both of which are meant to build a supplier base around anchors like this.

The fab shares the Activation Area and TP2 zone with the smart-city trunk infrastructure. You can see how it sits against the runway and roads on our interactive map, and read how the surrounding phase is planned in our Activation Area guide.

The bottom line

The Tata and PSMC fab is the most concrete large project at Dholera: a confirmed Rs 91,000 crore, centrally approved semiconductor plant with a serious technology partner and ASML tools on order. What remains a target is the timeline, first trial chip in December 2026 and full capacity later. Judge the region on this project's real progress, ignore the dead Vedanta-Foxconn story, and do not let a targeted date be sold to you as a finished plant.

Frequently asked questions

Sources

• PIB, PRID 2108602 (India Semiconductor Mission approval of the Tata fab).
• PIB Fiscal Support Agreement, signed 5 March 2025 (Rs 91,526 crore).
• Tata Electronics newsroom (PSMC technology transfer; ASML partnership, 16 May 2026).
• Press reports, April 2026 (civil work ~50%; trial production targeted December 2026).
• Tata and MeitY records on the collapsed Vedanta-Foxconn JV (Foxconn withdrawal 10 July 2023).