The fab will use advanced AI systems and automation to produce microchips for industries including automotive, AI, and wireless communications. Credit: AntonKhrupinArt/Shutterstock.

Construction has started on what is claimed to be India’s first artificial intelligence (AI) enabled semiconductor fabrication plant in Dholera, Gujarat.

Tata Electronics, in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is leading this Rs910bn ($11bn) project.

Dholera is a semiconductor manufacturing location located in the Dholera Special Investment Region (SIR) along the Delhi-Mumbai Industrial Corridor.

The facility will produce 50,000 wafers monthly and is expected to be completed by 2026.

The fab will utilise advanced AI systems and automation to manufacture microchips for industries such as automotive, AI, and wireless communications. It will focus on nodes ranging from 110nm to 28nm.

It will also manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU), and high-performance computing logic.

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This initiative is anticipated to create more than 20,000 skilled jobs, driving economic growth in the region.

In February this year, the Government of India first approved Tata Electronics’ proposal to build a mega semiconductor fabrication facility in Dholera, in partnership with PSMC.

Tata Electronics CEO and managing director Dr Randhir Thakur said: “This marks a beginning of a new era for India.  Tata Electronics is proud to play a prominent role in strengthening the global semiconductor ecosystem. 

“Our partnership with PSMC provides access to a broad technology portfolio in leading edge and mature nodes including 28nm, 40nm, 55nm, 90nm & 110nm and also collaboration for high volume manufacturing.”

This step is part of the ‘Make in India, For the World’ initiative to create an indigenous semiconductor ecosystem.

Dholera’s strategic choice is supported by Gujarat’s Semiconductor Policy, land subsidies, infrastructure, and energy resources.