The Indian government has approved a proposal from Tata Electronics to build a mega semiconductor fabrication facility (“Fab”) in Dholera, Gujarat, in collaboration with PSMC, a significant step towards creating an indigenous semiconductor ecosystem. The fab construction will begin this year with a total investment of up to INR91,000crores (~US$11bn) and will generate over 20,000 direct and indirect skilled jobs in the region. With this announcement, Tata Electronics enters the global semiconductor industry.
Tata Electronics and Powerchip Semiconductor Manufacturing Corporation (PSMC) will build India’s first AI-enabled manufacturing facility, capable of producing up to 50,000 wafers per month. The facility will use data analytics and machine learning to achieve industry-best efficiency. The facility will manufacture chips for applications like power management IC, display drivers, and high-performance computing logic. N Chandrasekaran, Chairman, Tata Sons had announced Tata Group’s decision to build a semiconductor fab in Dholera in the 20th Vibrant Gujarat Summit in January 2024. Commenting on the planned semiconductor Fab he said, “We are proud to lead India’s entry into global semiconductor fabrication. This will also accelerate our progress towards providing high-technology employment opportunities for the youth of India. Today’s announcement is possible because of the enduring vision of the Government of India under the leadership of Hon’ble Prime Minister Shri Narendra Modi in defining comprehensive central and state semiconductor policies, as well as continuous advocacy and support from Ministry of Electronics and Information Technology (MeitY), India Semiconductor Mission (ISM) and the Government of Gujarat.” Adding to that, Dr. Randhir Thakur, CEO & MD, Tata Electronics said, “We are confident that the upcoming Fab will support our ambitions of “Make in India,For the World”. We will be able to serve our global customers’ requirements for supply chain resilience and meet the growing domestic demand.”
PSMC, which is one of Taiwan’s leading pure-play foundry companies with capabilities across logic and memory technologies, will provide access to leading-edge and mature technologies. Dr. Frank Huang, Chairman, PSMC said “There could not have been better time for India to make its entry into semiconductor manufacturing industry. This partnership has the potential to redefine the contours of global semiconductor manufacturing and we are looking forward to collaboration with Tata Electronics.”
