First chip from Dholera plant by 2026 end: PSMC chairman Frank Huang

Frank Huang, chairman of PSMC, confirmed that the first semiconductor chip from the new Dholera plant, a joint venture with Tata Electronics, is expected to roll out by the end of 2026. Speaking exclusively to ET, Huang highlighted that technology transfer is currently being finalized, with investment discussions to follow.

The $11 billion facility is supported by central and state government subsidies covering up to 70% of the project cost. The Dholera unit is set to become India’s first commercial semiconductor fab, initially producing 28nm chips, with plans to gradually advance to higher-end chips in the future.

Huang emphasized the rapid progress of the project and the collaboration with Tata Group, noting that India is accelerating seriously in the semiconductor manufacturing sector. “Semiconductors are expensive; once you have one fab, you can develop two or three more. That is the future India can aim for,” he said.

The union cabinet approved the Dholera fab along with two other chip assembly units — one by Tata Electronics in Assam and another by CG Power in Gujarat — with ground-breaking ceremonies scheduled simultaneously. Prime Minister Narendra Modi highlighted this initiative on social media as a landmark step in India’s semiconductor ambitions.

PSMC was chosen by the Indian government to partner with Tata Electronics due to its expertise, reputation, and ability to leverage government subsidies effectively. Huang explained that other companies were considered, but Tata’s strong financial backing and credibility made it the ideal partner for this large-scale project.

The fab will produce chips for applications including power management ICs, display drivers, microcontrollers (MCUs), and high-performance computing logic, addressing global demand across automotive, computing, data storage, wireless communication, and artificial intelligence sectors. Talent development is also a key focus, with training programs planned for Indian engineers.

Tata Electronics has strengthened its leadership team, appointing industry veterans such as Randhir Thakur, former Intel Foundry Services president, as CEO, and Srinivas Satya, former head at Applied Materials, as chief supply chain officer. These appointments signal the company’s serious intent to establish a world-class semiconductor ecosystem in India.