India imports 100% of its Silicon Carbide power chips. Every EV charging station. Every solar inverter. Every industrial motor drive. All SiC chips — imported.
That changes in mid-2027. NextGen Semiconductors is building India's first SiC power chip plant — in Dholera SIR, 10 km from Tata's semiconductor fab.
₹8,800 crore. Construction started April 2026. Ground has broken.
What Is Silicon Carbide — and Why India Needs It Urgently
Silicon Carbide (SiC) is a compound semiconductor — harder, faster, and more heat-resistant than regular silicon. It operates at higher voltages and temperatures, making it the critical material for high-power electronics.
Every EV has a SiC-based power module converting battery DC to AC for the electric motor. Every fast-charging station has a SiC converter. Every solar inverter uses SiC switches.
- 🚗 2024 India EV sales: ~19 lakh units
- 🚗 2030 India EV sales projection: 50–70 lakh units annually
- ⚡ EV charging infrastructure: 70,000+ stations planned by 2027 under FAME-III
- ☀️ Solar capacity: 500 GW by 2030 — each GW needs ~3,000 SiC inverter modules
- 🏭 India's current SiC supply: zero domestic production
India spends billions annually importing SiC chips from Germany (Infineon), USA (Wolfspeed), and Japan (Rohm). NextGen's plant eliminates this dependency for a significant share of the domestic market.
NextGen Semiconductors — The Exact Facts
- 💰 Investment: ₹8,800 crore (~USD 1 billion)
- 🔬 Product: Silicon Carbide (SiC) power semiconductors — MOSFETs and diodes for EV/solar/industrial applications
- 📍 Location: Dholera SIR, Gujarat (10 km radius from Tata Electronics fab)
- 🤝 Partners: Malaysian investor IVP; MoUs with Hitachi India and Gujarat State Electronics Mission (GSEM)
- 🏗️ Construction start: April 2026
- 📅 Commissioning target: Mid-2027
- 👥 Employment: ~5,000 direct jobs at full operation
- 🎯 Policy backing: Gujarat Semiconductor Policy — 75% land subsidy, 40% capex subsidy
Why SiC Is Different From Silicon
Regular silicon chips work up to ~600V and ~150°C. SiC chips operate at up to 1,700V, 200°C, and switch at 5–10× higher frequencies.
For EVs: a drivetrain using SiC components is 5–8% more energy-efficient than silicon — directly translating to range. For solar: SiC inverters lose less energy as heat, improving total yield by 1–3 percentage points. At 500 GW scale, that is a significant national energy gain.
SiC is the enabling technology for India's two largest green energy transitions: EVs and solar.
The Dholera Semiconductor Cluster — Why Two Fabs Beat One
Tata's fab (silicon, 28nm–110nm logic chips) and NextGen's fab (SiC power chips) are different products, different processes. They are complementary — not competing.
Together they create a semiconductor cluster — the model that made Taiwan's Hsinchu Science Park and South Korea's Hwaseong the world's chip capitals. Shared talent pool, shared equipment suppliers, shared chemical suppliers, shared logistics. Each new fab makes all existing fabs more efficient.
For a comparison: when TSMC Arizona announced its first fab, surrounding Phoenix/Chandler/Gilbert residential prices rose 40–60% over the following 24 months. A second fab announcement from Intel in the same corridor compounded that appreciation further.
Dholera now has two fabs. The cluster has begun.
Hitachi India Partnership — The Supply Chain Signal
NextGen's MoU with Hitachi India is not a press agreement. Hitachi is a tier-1 industrial conglomerate with deep relationships across India's power sector, rail infrastructure, and manufacturing supply chains.
When Hitachi partners with a SiC fab, it signals it intends to use that fab's output in its own products — industrial drives, rail power systems, smart grid equipment. This gives NextGen a captive B2B demand channel from day one of production, reducing the market risk that early-stage fabs typically face.
The Employment and Housing Math
- 👥 Tata fab direct employment: ~20,000 at full operation
- 👥 NextGen fab: ~5,000 projected
- 👥 Indirect/ancillary: 3–5× direct = 75,000–1,25,000 total
- 🏠 Average family size 3.5 → 2.5–4.5 lakh people needing housing
These workers will not commute 100 km from Ahmedabad daily. There is currently almost zero quality residential housing in the Dholera catchment. This demand will need to be built — and it will start with the plots that are already registered and ready.
Rajpath Supreme 2: freehold residential plot, Dholera SIR. ₹725/sqft bulk. Minimum 10,000 sqft. All-in ~₹88 lakh. Anticipated retail ₹1,500/sqft Q1 2027.
Ready to understand the full investment case?
📞 Saurabh: +91 99113 32635
Zero brokerage · Free site visit from Ahmedabad · All documents verified