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ISM, TEPL & TSMPL Ink Fiscal Support Agreement for Semiconductor Fabrication.

MOUs and Agreement | Dated: 07 Mar 2025

On March 5, 2025, India Semiconductor Mission (ISM), Tata Electronics Private Limited (TEPL), and Tata Semiconductor Manufacturing Private Limited (TSMPL) signed a Fiscal Support Agreement (FSA) to establish India's first commercial semiconductor fabrication unit in Dholera, Gujarat.

🎯 Key Highlights:

  • - TEPL’s semiconductor fab in Dholera Special Investment Region (SIR) involves an investment of over ₹91,000 crore and has a capacity of 50,000 wafer starts per month (WSPM).
  • - The Government of India (GoI), through ISM, has committed to providing 50% fiscal support on a pari-passu basis for qualified project expenses, showcasing its dedication to building a world-class semiconductor ecosystem.
  • - The project is expected to create over 20,000 direct and indirect skilled jobs. TEPL will collaborate with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) to bring global expertise to India’s semiconductor industry.

💡 Other Important Facts:

  • (i) The semiconductor fab will cater to global markets in sectors such as Artificial Intelligence (AI), communications, computing, and automobiles, strengthening India's role in the global semiconductor supply chain.
  • (ii) ISM was launched in 2021 under the Ministry of Electronics and Information Technology (MeitY) with a financial outlay of ₹76,000 crore to promote semiconductor, display manufacturing, and design ecosystems in India.
  • (iii) ISM oversees four key schemes under the Semicon India Programme, including the Scheme for setting up Semiconductor Fabs, the Scheme for setting up Display Fabs, the Scheme for Compound Semiconductors, Silicon Photonics, Sensors, ATMP/OSAT facilities, and the Design Linked Incentive (DLI) Scheme.

📚 Test Your Knowledge:

Recently, which Indian state is hosting the country's first semiconductor fab under the ISM initiative?

Correct Answer: Gujarat

🚀 Quick Recap: