Tata Electronics to Develop India's Semiconductor Ecosystem with Rs 91,000 Crore Investment

Tata Sons Chairman N Chandrasekaran has emphasized the importance of collaboration and financial viability in India's semiconductor push. As the country looks to become a significant player in the global supply chain. The investment of around Rs 91,000 crore in a fabrication plant in Dholera.

Gujarat, with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) as its partner, is aimed at catering to rising domestic demand and reinforcing India's semiconductor supply chain.

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"We are in a beautiful spot in India, because we have the talent, we have the domestic market, we can play a part in every global supply chain," Chandrasekaran said at the 2026 Bloomberg New Economy Forum. "We need partnerships, because we have all the technologies . But if you design it, definitely we will get there.

But you also have to be careful, because you need to keep an eye on energy."

Alongside the fabrication plant, the group is developing a semiconductor assembly and test facility in Assam at an investment of around Rs 27,000 crore. The projects are intended to strengthen India's integration with the global electronics manufacturing ecosystem.

Chandrasekaran cautioned that India and businesses should not rush into manufacturing the most advanced chips without first determining whether there was sufficient demand to justify the investment. "You cannot be reckless and say that I am going to be putting a 2 nanometre chip (plant). It's just not going to work.

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So, we need to also see where the demand is," he said.

Chandrasekaran's appointment as Tata Sons Chairman for a third five-year term has been met with scrutiny. Particularly following a boardroom power struggle over the group's direction. The Tata Sons Chairman's tenure has been extended, despite a contentious boardroom dispute.