Japan’s Investment in Dholera: Driving India’s Smart City and Semiconductor Growth

Introduction

Dholera, Gujarat’s upcoming smart city, is fast becoming one of the most attractive investment hubs in India. Over the last year, the region has drawn global attention, especially from Japan. With major investments flowing in, particularly in the semiconductor sector, Dholera is positioning itself as a center for next-generation industries and global technology growth.

Key Highlights

1. India-Japan Semiconductor Partnership

Japan has announced plans to invest USD 68 billion in India over the next decade to strengthen semiconductor manufacturing. A big part of this is the USD 11 billion wafer fabrication plant coming up in Dholera by Tata Electronics, in collaboration with Tokyo Electron. This is a major step toward making India a strong player in the global chip-making industry.

2. High-Level Japanese Delegation Visit

On July 10, 2025, Japanese Ambassador Keiichi Ono led a business delegation to Dholera SIR. They reviewed key infrastructure like the Integrated Command & Control Centrepower substation, and the Tata-PSMC semiconductor fab under construction. Their visit also highlighted Japan’s interest in other sectors like electric vehicles (EVs) and high-speed rail projects.

3. Political and Diplomatic Support

Ambassador Ono also met Gujarat Chief Minister Bhupendra Patel to discuss expanding semiconductor investments. He praised Gujarat’s governance and its investor-friendly policies, which have made it easier for Japanese companies to operate in the state.

4. ₹1.54 Lakh Crore Semiconductor Push

The semiconductor industry in Gujarat, with Dholera at the center, is part of India’s larger plan involving investments worth ₹1.54 lakh crore. This not only brings in jobs but also puts India on the map as a trusted partner in advanced technology manufacturing.

5. Strengthening Global Supply Chains

The Dholera project is a great example of how global partnerships can reshape industries. Japan’s involvement supports India’s role in the “China+1” strategy, giving global companies an alternative manufacturing destination beyond China.

6. World-Class Infrastructure

Dholera is also seeing rapid infrastructure growth. The Dholera International Airport is expected to be operational by December 2025, while the Ahmedabad–Dholera Expressway will improve connectivity, making it easier for global businesses to set up and operate here.

7. Future of EVs and Green Energy

Japan’s interest isn’t limited to semiconductors. Investors are also looking at opportunities in electric vehicles and renewable energy projects in Dholera. This supports India’s vision of developing a sustainable, future-ready industrial hub.

Conclusion

Japan’s growing involvement in Dholera is more than just about money—it marks a turning point in India’s journey toward becoming a global technology leader. With billions of dollars in investment, strong political support, and modern infrastructure coming up, Dholera is set to become India’s semiconductor and innovation capital. This partnership will not only drive economic growth but also build stronger and more resilient global supply chains. For investors and industries worldwide, Dholera is no longer just a plan—it’s the future.