Japanese Firms Strengthen Dholera’s Semiconductor Ecosystem, Support Tata–PSMC Fab

While Japanese firms are actively investing in India's semiconductor sector, their investment in Dholera is primarily focused on supporting the ecosystem rather than establishing a direct semiconductor fab. Instead, a major semiconductor fabrication plant in Dholera is a joint venture between India's Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC).

Japanese firms' contributions to Dholera:

Tokyo Electron (TEL): This major semiconductor equipment giant has announced plans to set up an office in Dholera to support the new Tata-PSMC fab facility. The office will include a training center to upskill Indian engineering talent.

Shimizu Corporation: Representatives from this precision engineering company visited Dholera to explore investment opportunities, specifically in setting up precision facilities for Japanese small and medium enterprises (SMEs) that will supply the Tata-PSMC plant.

Supporting ecosystem: A delegation of 20 Japanese semiconductor ecosystem support companies visited Dholera to find investment opportunities in supporting industries like clean rooms, gas distribution systems, and material supply.

Wider engagement: Japan has also announced broader plans to invest billions in India over the next decade to strengthen semiconductor manufacturing and is also showing interest in other sectors like electric vehicles (EVs).

Key details about Dholera's semiconductor fab:

Investment: Tata Electronics' plant is a significant investment, worth around ₹91,000 crore (approximately $11 billion).

Technology partner: The collaboration with Taiwan's PSMC will leverage their expertise to create an AI-enabled fabrication unit.

First chip expected: The first chips from the Dholera plant are projected to be rolled out by December 2026.