Tata Electronics has reaffirmed confidence in India’s long-term semiconductor plans, committing approximately $14 billion to manufacturing and packaging facilities as part of the government’s Semicon 2.0 programme, signalling a significant shift towards establishing India as a key player in the global supply chain.
Randhir Thakur has said India’s semiconductor strategy looks durable, pointing to the government’s Semicon 2.0 programme as evidence that the policy backdrop remains steady for a sector that depends on long investment cycles. The Tata Electronics chief executive said the industry is built on continuity rather than quick returns, and that the move from Semicon 1.0 to a second phase matters because chipmaking requires long-term planning and repeated capital spending.
Tata Electronics is one of the most important private-sector bets in India’s push into chips, with work under way on a fabrication plant in Dholera, Gujarat, and an assembly and testing facility in Jagiroad, Assam. The company has said the combined investment stands at about $14 billion, while the projects have also been presented as part of a broader effort to serve global customers in sectors such as automotive, consumer electronics, computing and data storage. According to Tata’s own earlier announcement, Prime Minister Narendra Modi virtually laid the foundation stones for both facilities, with the Dholera plant slated to produce a range of chips and the Assam site focused on advanced packaging technologies.
Thakur also said Tata Electronics’ 16 memoranda of understanding, signed around Semicon India 2026, are meant to help build the industrial base around the two projects. He said the Dholera factory alone will need roughly 450 suppliers, covering equipment, infrastructure, gases, chemicals and related services, while some of the agreements are aimed at supporting the Assam packaging operation. The emphasis, he said, is not only on machinery and production lines but also on training younger workers for semiconductor manufacturing, which he described as a way of building the industry’s “DNA” at ground level.
The executive also linked the chip drive to artificial intelligence, saying the foundation of AI progress is hardware and compute capacity. That view aligns with the government’s wider policy push: the Union Cabinet approved Semicon 2.0 with a budget of ₹1,27,500 crore to support design, fabrication, advanced packaging, equipment, materials, research and talent development. Taken together, the policy framework and Tata Electronics’ investments point to a larger ambition , to move India from a potential supplier into a more established participant in the global semiconductor supply chain.
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