Tata Group is trying to increase its foothold in Dholera, Gujarat, by acquiring an additional 80 acres of land for the expansion of its semiconductor fabrication facility. As per the information available, this land will be adjacent to the 20-acre plot where the state-of-the-art chip manufacturing unit is under construction.

A senior official revealed that Tata Electronics, one of the Tata Group companies, is planning to construct residential facilities on this site to accommodate 3,000 to 3,500 employees, thereby creating a complete ecosystem for the company’s workforce.

A Smart, Mixed-Use Development in the Making

The land is designated for mixed-use development to serve not only the employees of Tata Electronics Private Limited (TEPL) but also those who are working in the supply chain in the semiconductor plant. In addition, the project proposal includes building some 3,000 studio apartments and additional facilities so as to form a self-sufficient community.

Eventually, the area could see the construction of a new shopping center, which would include retail stores, family entertainment centers, and fine dining restaurants. Moreover, other facilities like sports activities, special dining areas for foreign workers, and other recreational areas have also been planned.

Government Extends Support for Tata’s Expansion

In an effort to realize Tata’s plan, the Gujarat government has sent a letter of support to TEPL, where they intend to extend more 63 acres if necessary for other ancillary works of development intended in Dholera. Still, there were no friends willing to ask TEPL any of the multiple questions related to the expansion.

This semiconductor facility is India’s very first chip fabrication plant and was sanctioned on February 29, 2024, under the India Semiconductor Mission (ISM). It is estimated to be operational by 2027 and will provide approximately 2000 new jobs.

Tata’s ₹91,000 Crore Investment

This Dholera-based semiconductor project is Tata’s investment of ₹91,000 Crore, signifying the advancement of India’s chip manufacturing industry. The allocated land alone is valued at around 200 crores INR, with an additional investment of ₹15710 crore planned to be spent for the construction of the Fabrication unit, IT infrastructure, and utilities.

Led by ₹76,000 crore, the India Semiconductor Mission (ISM) intends to maximize semiconductor manufacturing & packaging within the country. Aside from the four sanctioned chip packaging units, Tata Electronics’ fabrication plant operates as the only sanctioned chip-making facility in India.

This development represents the Tata Group’s long-term effort to transform India into a semiconductor superpower and reduce import dependency, ultimately strengthening India’s technology-based economy.