TATA Electronics, a wholly owned subsidiary of TATA Sons Pvt. Ltd, a pioneer in India's electronics manufacturing sector, has announced a significant step forward in its journey to establish India's first semiconductor Fab in Dholera, Gujarat. In a landmark move towards establishing semiconductor manufacturing in India, TATA Electronics has completed the Definitive Agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan. This pivotal agreement is a cornerstone of TATA Electronics' strategy to bring sophisticated semiconductor manufacturing technology and best practices to the shores of India and serve global customers with a robust and resilient supply chain.

As per the agreement, PSMC will provide design and construction support to build India's first AI-enabled state-of-the-art greenfield Fab in Gujarat, license a broad portfolio of technologies and provide engineering support to successfully transfer licensed technologies to the Gujarat Fab. This Fab will have manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency. The new semiconductor Fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as AI, automotive, computing and data storage, and wireless communication.

This pioneering agreement between TATA Electronics and PSMC will bring to India a portfolio of cutting-edge semiconductor technologies, advanced skill set and talent, and a network of semiconductor manufacturing suppliers and ecosystem partners, setting the foundation for an indigenous semiconductor ecosystem in India. The agreement marks a seminal moment in positioning India as a trusted partner in the global semiconductor supply chain and accelerates the country's journey towards 'Make in India, For the World' as it transforms into a global semiconductor manufacturing hub.

With a total investment of up to ₹91,000 crores (~US$11bn), the Fab will create over 20,000 direct and indirect skilled jobs. With this Fab, India for the first time will be able to address the growing chip demand of domestic and global customers. TATA Group's multi-fab vision for Dholera is projected to create over 1,00,000 skilled jobs.

N Chandrasekaran, Chairman, TATA Sons, said, "We are pleased to partner with PSMC, whose technology and expertise will significantly accelerate our roadmap to pioneer semiconductor manufacturing in India. This collaboration is a key milestone, and I am confident that our comprehensive technology partnership with PSMC will pave the way for innovation, drive growth, and strengthen the global semiconductor supply chain. It will position us to play a key role in the growing semiconductor market to serve global customers."

Dr Frank Huang, Chairman of Powerchip Group and CEO of PSMC, said, "We are excited to collaborate with TATA Electronics on this pioneering initiative to establish India's first semiconductor Fab in Gujarat. It reflects our commitment to providing cutting-edge technology and expertise, helping TATA Electronics create a state-of-the-art facility that will catalyse India's semiconductor landscape. This partnership represents a win-win situation, as it positions PSMC and the Taiwanese ecosystem to gain a significant first-mover advantage in the rapidly expanding Indian market, while helping India achieve self-reliance in semiconductor manufacturing. I strongly believe that our partnership will be foundational to the India-Taiwan collaboration in semiconductors and will inspire more commercial and strategic tie-ups between the two sides."

Notably, TATA Electronics has already engaged two esteemed design firms from Taiwan to create a top-tier Fab that adheres to global standards of quality, safety, and sustainability. The collaboration between TATA Electronics, PSMC and the Taiwanese ecosystem is poised to strengthen the resilience of the global supply chain and effectively cater to the needs of global customers.

Agencies