The Government of India has approved a proposal from Tata Electronics to build a mega semiconductor fabrication facility in Dholera, Gujarat. Accordingly, Tata will undertake the milestone in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).  

The fab construction will begin this year with a total investment of up to INR 91,000 crores (~US$11 billion). Moreover, the planned fab is likely to generate over 20,000 direct and indirect skilled jobs in the region. With this announcement, Tata Electronics enters the global semiconductor industry.

Employs Advanced Factory Automation

The AI-enabled fab will have a manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities. Specifically, 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. Thus, addressing the growing demand in markets such as automotive, computing, communications, and artificial intelligence.

N Chandrasekaran, Chairman, Tata Sons said, “Tata Group has a tradition of pioneering many sectors in the country, and we are confident that our entry in semiconductor fabrication will add to this legacy.”

With AI-led digitization of every aspect of human existence, semiconductors will be the most critical building block. By 2030, the global semiconductor industry will likely grow to US$ 1 trillion and Indian semiconductor demand will cross US$110 billion. for that reason, N Chandrasekaran said India’s entry into semiconductor manufacturing will significantly de-risk global supply chains. Thus, will make India a very important player in the global semiconductor industry.

In addition, N Chandrasekaran took note of the Indian government’s comprehensive central and state semiconductor policies. Moreover, he also underscored the advocacy and support from the Ministry of Electronics and Information Technology (MeitY), India Semiconductor Mission (ISM), and the Government of Gujarat.” 

Access to Leading Edge Technologies

Emphasizing the significance of this strategic step, Dr. Randhir Thakur, CEO & MD, Tata Electronics said, “This marks the beginning of a new era for India. Tata Electronics (will) play a prominent role in strengthening the global semiconductor ecosystem. Our partnership with PSMC provides access to a broad technology portfolio in leading edge and mature nodes.” Specifically, Dr. Thakur identified 28nm, 40nm, 55nm, 90nm & 110nm and also collaboration for high volume manufacturing.

Moreover, Dr. Thakur said “…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, “Tata Group is one of the most established and well-respected names in India and globally…I believe (the partnership) will script a new era in the global semiconductor industry.”

This new initiative from Tata Electronics will bring to India a portfolio of cutting-edge semiconductor technologies and advanced skill set and talent. In addition, it will also propel a network of semiconductor manufacturing suppliers and ecosystem partners. Thus, resulting in foundational development of indigenous semiconductor ecosystem in India.

With this Fab, India will be able to address the growing chip demand of domestic and global customers across automotive, computing, communications, and artificial intelligence markets.