Fujifilm to build ₹800 crore Dholera chip materials plant under Tata Electronics MoU

The plant will be built in two phases in the Dholera Special Investment Region, next to Tata Electronics' fab. Fujifilm India will initially make front-end process chemicals, then add semiconductor surface conditioning materials and high-purity chemicals in the second phase, managing director Koji Wada told Business Standard.

Fujifilm plans to invest roughly ₹800 crore, or about $83 million, in phases. That is less than 1% of the ₹91,000 crore, or about $11 billion, Tata Electronics is spending on the 300mm Dholera fab, which is designed for process nodes from 28nm to 110nm. The plant is meant to sit close to the fab to cut logistics risk and secure direct access to chemical and material inputs.

Wada said Tata Electronics will be an important customer at the start. Packaging companies and other chipmakers could follow as India's manufacturing base widens, he said. Wada said Fujifilm India is exploring potential supply agreements for chemicals and semiconductor raw materials with several companies in India.

Why the supply layer matters

Tata Electronics is building the Dholera fab for a total investment of ₹91,000 crore and a $3 billion packaging facility at Jagiroad in Assam. Both sites need a steady flow of chemicals, gases and spare parts. Utpal Shah, Tata Electronics' senior vice president for strategy and business development, said the Dholera fab is so capital-intensive that it cannot be down for even a few hours.

Shah said repair, maintenance, spare parts, chemicals and gases all have to be arranged so that mean time to repair stays very short. He said the Dholera plant will have roughly 450 suppliers, a mix of domestic and international firms, and that all of them need at least some presence close to the fab.

Tata Electronics is developing a 363-acre plug and play vendor park nearby, with power, water, utilities and roads, and in some cases building shells, Shah said at Semicon India 2026.

Local sourcing plans

Fujifilm also plans to give technical support to Indian chemical suppliers, sharing know-how on quality assurance and manufacturing processes so high-purity chemicals can be made locally. Wada said much of the raw material will initially be imported, and Fujifilm will look to partner with Indian firms, guide them on manufacturing and technical know-how, and eventually buy from them. Fujifilm said its semiconductor materials business is a main growth area and it sees India's expanding chip market as an opportunity.

Wada said India should keep supporting the ecosystem with incentives beyond existing programmes, and that sourcing locally is how Indian firms can compete on cost with Taiwan, Malaysia and Singapore.

The Fujifilm agreement was one of seven pacts Tata Electronics signed at Semicon India 2026, out of the 16 it said it would sign. Randhir Thakur, Tata Electronics' chief executive and managing director, said the partnership was "an important step in strengthening the semiconductor materials supply chain" for the plant. Thakur said the Dholera fab and Assam packaging plant are on track to meet commitments made to the government.

The government approved an expanded semiconductor mission, ISM 2.0, in July with an outlay of ₹1.27 lakh crore, covering research, design, machinery and materials as well as fabs and packaging.