Industrial and electronic gas producer Inox Air Products (Inox AP) has commenced construction of a Rs 500-crore electronic specialty gas hub at Dholera, Gujarat, to cater to the emerging semiconductor manufacturing ecosystem anchored by Tata Electronics.
The upcoming facility will produce and supply Ultra High Purity (UHP) bulk and specialty gases—including nitrogen, oxygen, argon, and hydrogen—that are critical for advanced semiconductor fabrication processes.
“We have been planning this facility for more than a year, and construction has now begun,” said Siddharth Jain, Managing Director, Inox Group, in an interview with The Economic Times. “I am very hopeful that within 12 to 18 months, at the latest, we should have this facility operational.”
Jain added that the hub’s commissioning is being aligned with Tata Electronics’ semiconductor plant schedule. “The primary purpose of investing in this facility is to meet the demand from Tata’s project and a few other smaller semiconductor players in the region, who don’t require the same level of gas complexity that Tata requires,” he said.
Tata Electronics is building India’s first semiconductor fabrication plant in Dholera—a Rs 91,000-crore joint venture with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC). The project is a key pillar in India’s drive to establish a domestic semiconductor manufacturing base. As construction advances, ensuring a reliable supply of ultra-pure gases and chemicals will be critical to the fab’s success.
Jain noted that Inox AP is the first industrial and electronic gas company to secure land in Dholera. The investment, spread over two to three years, includes setting up a fulfilment centre to store and deliver around 40 types of gases currently not produced in India.
“Tata’s demand alone is too small right now for us to invest in manufacturing all 45 different gases, but we will gradually scale up as demand grows,” said Jain. “We are already in discussions with various multinationals for collaborations to produce some of these gases and chemicals domestically.”
In the initial phase, Inox AP will import certain specialty gases, with plans to localize production as technology tie-ups and investments mature. “Our long-term plan is robust and scalable,” Jain added.
Looking ahead, Inox AP also aims to export gases and chemicals from Dholera, though Jain clarified that such activities will require additional investments beyond the initial Rs 500 crore outlay.
The company currently employs over 1,800 people, and its workforce is expanding in line with ongoing projects. Jain emphasized the importance of training and skill development for employees assigned to the Dholera facility.
“For solar and semiconductor gases, all skilling happens abroad,” he said. “We send our people to vendor locations for training and bring them back. It’s an ongoing process we’ve maintained for over three years, and we continue to invest heavily in our people.”