Two states are setting the pace on India’s semiconductor agenda. Gujarat has a live advanced packaging project in Sanand and a planned wafer fab in Dholera. Tamil Nadu is building a parallel case that blends a fab pitch with a strong design and manufacturing talent pool. The result is competitive federalism that actually helps because fabs are ecosystems, not monuments.
What is real today
Sanand’s assembly, testing and packaging facility is on the clock to start production, giving India exportable capability fast. Dholera has approvals for a greenfield fab by a domestic major partnered with an experienced foundry operator. The talent math is strong in both corridors thanks to long-running engineering colleges and proximity to industrial clusters.
Why Gujarat took an early lead
Contiguous land, quick approvals, water and power planning, and an early bet on electronics clusters gave it the first mover’s advantage. Suppliers and materials partners can colocate near both Sanand and Dholera, which lowers logistics risk for chemicals and wafers.
Where Tamil Nadu can catch up
The state already hosts auto-electronics, EMS, and deep design talent. If it clinches a wafer fab or a major OSAT plant, it can leverage ports, an existing manufacturing culture, and universities that feed VLSI and computer engineering. Even without a fab on day one, a design-to-manufacture pipeline plus specialty materials can make it indispensable.
The national picture
Having multiple centers hedges supply shocks and accelerates supplier migration to India. Expect more MoUs for materials, equipment servicing, and training centers. Watch for vendor villages near Dholera and Sanand and a southern cluster focused on design, test, and specialty packaging.
Risks and reality checks
Fabs are multi-year megaprojects with moving parts. Water, power PPAs, and skilled maintenance matter as much as ribbon cuttings. The good news is that the project list now spans packaging, logic, and ecosystem services, not just a single marquee fab.
Investor and operator takeaway
Plan for India as a multi-node chip geography. If you are a supplier, pick a beachhead near the first movers and a second site where talent is deep. If you are a state, build housing and schools as aggressively as clean rooms. Engineers bring families.
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