India expands semiconductor manufacturing in Dholera

December 10, 2025 /SemiMedia/ — India is accelerating its push into semiconductor manufacturing as the Dholera Special Investment Region in Gujarat evolves into a large-scale industrial zone designed to host the country’s first full-stack chip production cluster. The development, often referred to as “Semicon City,” covers extensive residential and commercial planning alongside utilities and transport infrastructure.

The project is managed by the Dholera Industrial City Development Corporation, a federal–state joint venture overseeing a long-term buildout that will eventually span about 920 square kilometers. Portions of the transport grid, power distribution and water systems are already operational, laying the groundwork for a projected population of nearly two million once the zone is fully developed.

Tata Electronics is emerging as the anchor of this semiconductor hub. The company is investing roughly US$10 billion to construct India’s first front-end wafer fab and is partnering with Powerchip for process technology support. Construction is underway, with plans to reach a monthly capacity of 50,000 wafers and generate more than 20,000 industry-related jobs. The site is expected to become a nucleus for equipment suppliers and materials companies positioning near the fab.

Global chipmakers and suppliers deepen partnerships with India

Intel has also entered the picture as a potential early customer for Tata’s upcoming facility, signaling growing confidence among U.S. chipmakers in India’s manufacturing ambitions. Beyond wafer supply discussions, Intel and Tata plan to collaborate on accelerating adoption of AI PC platforms in India’s consumer and enterprise markets. Analysts expect India to rank among the world’s top five PC markets by 2030 as demand for AI-capable devices rises.

New investment is extending beyond domestic players. Tokyo Electron aims to establish a support hub in Dholera to handle equipment installation and maintenance, while Fujifilm plans to build a materials plant that will produce specialty chemicals used in semiconductor cleaning processes. These moves highlight a broader shift of global suppliers integrating more tightly with India’s manufacturing expansion.

India has approved ten semiconductor manufacturing projects nationwide, with public and private investment commitments exceeding 1.6 trillion rupees. Combined with increasing foreign participation, the country is positioning Dholera as a new node within the global chip production network.