India crossed a historic technological threshold on Tuesday as the Tata Electronics-PSMC joint venture semiconductor fabrication plant in Dholera, Gujarat, produced its first test wafers. The 28-nanometer facility, built at a cost of $11 billion, represents India's entry into the exclusive club of chip-manufacturing nations.
The Milestone
The trial production involves manufacturing test chips on 300mm silicon wafers, a critical step before commercial production begins. Engineers from Taiwan's PSMC (Powerchip Semiconductor Manufacturing Corporation) are working alongside Indian staff to calibrate the facility's 1,200 pieces of specialized equipment.
Commercial production of chips for automotive, IoT, and power management applications is expected to begin in the fourth quarter of 2026. Initial capacity targets are 40,000 wafers per month, scaling to 100,000 by 2028.
Strategic Significance
India currently imports virtually 100 percent of the semiconductors used in its $150 billion electronics manufacturing sector. Domestic chip production is a cornerstone of the government's strategy to reduce dependency on Taiwan and China for critical technology components.
"This is not just a factory — it is a statement of strategic intent. India will not be dependent on any single country for the technology that powers modern civilization," said Tata Group Chairman N. Chandrasekaran.
- Total investment: $11 billion (50% government subsidy under India Semiconductor Mission)
- Employment: 5,000 direct jobs, estimated 25,000 indirect
- Technology: 28nm process, suitable for automotive, IoT, and telecom chips
