India Fab Delays 28nm, Starts with 90nm Process in 2028

According to Tata Electronics, the company is preparing to build India’s first large-scale semiconductor wafer fabrication facility in Dholera, Gujarat, with initial mass production expected to begin using the 90nm process technology rather than the previously announced 28nm node.

Sources familiar with the matter said the Dholera fab will produce India’s first domestically manufactured wafers using the 90nm process. This mature semiconductor technology is widely used in industrial equipment, automotive electronics, and other applications that prioritize reliability and long-term availability. However, the move represents a shift from Tata Electronics’ earlier goal of starting chip production with 28nm technology.

A Tata Electronics spokesperson stated that the Dholera facility is designed to support a broad range of process nodes from 28nm to 110nm. The company’s original roadmap has always included the introduction of 55nm and 90nm processes first, followed by the gradual deployment of 28nm technology, which will remain an important part of its future product portfolio.

Tata Electronics is developing the semiconductor facility in partnership with Taiwan-based foundry company Powerchip Semiconductor Manufacturing Corporation (PSMC). A PSMC spokesperson said the collaboration covers multiple technology nodes, with 28nm representing the most advanced process planned for the project. Semiconductor manufacturing platforms are typically introduced in phases, beginning with more mature and proven technologies before moving toward advanced nodes.

In its annual report for the fiscal year ending March 2025, Tata Group previously stated that its semiconductor manufacturing business would begin with 28nm technology and gradually expand toward more advanced processes. The decision to start production at 90nm indicates that Tata Electronics remains in the early stages of building semiconductor manufacturing capabilities and production infrastructure.

The Dholera semiconductor fab is expected to require a total capital investment of approximately $10.7 billion. The Indian government has announced a $10 billion semiconductor incentive program to support semiconductor projects, including assistance for facility construction and ecosystem development.

On July 15, the Indian government approved a new incentive package worth 1.28 trillion rupees (approximately $13.3 billion) to support chip design, semiconductor manufacturing equipment, and supply chain development. However, the new funding will only apply to future investments and will not cover previously approved expenditures.

Regarding the production timeline, Tata Electronics had previously targeted the start of commercial operations by the end of 2026. However, India’s Minister of Electronics and Information Technology Ashwini Vaishnaw recently stated that the Dholera fab is now expected to begin commercial production around mid-2028.

The development highlights India’s ongoing efforts to establish a domestic semiconductor manufacturing ecosystem, with mature process technologies such as 90nm playing a key role in automotive, industrial, and other high-reliability electronic applications while the country gradually builds experience toward more advanced semiconductor nodes.