The Government of India has approved a proposal from Tata Electronics to construct a mega semiconductor fabrication facility (Fab) in Dholera, Gujarat.
The facility, to be developed in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), aims to bolster India's position in the global semiconductor market.
The project, with an investment of up to INR 91,000 crores is set to generate over 20,000 direct and indirect skilled jobs in the region.
Tata Electronics, a wholly owned subsidiary of Tata Sons Pvt. Ltd. will collaborate with PSMC to build India's first AI-enabled, state-of-the-art semiconductor Fab.
The facility, slated to begin construction this year, will boast a manufacturing capacity of up to 50,000 wafers per month. It will leverage advanced factory automation capabilities, incorporating data analytics and machine learning to achieve industry-leading efficiency.
The new semiconductor Fab is set to manufacture chips for a range of applications, including power management ICs, display drivers, microcontrollers (MCUs), and high-performance computing logic. These chips will cater to burgeoning demands in markets such as automotive, computing, data storage, wireless communication, and artificial intelligence.
N Chandrasekaran, Chairman of Tata Sons, announced the Tata Group's decision to establish a semiconductor fab in Dholera during the 20th Vibrant Gujarat Summit in January 2024. He emphasized the significance of India's foray into semiconductor manufacturing, citing the country's growing semiconductor demand and its potential to de-risk global supply chains.
Speaking on the partnership with PSMC, Randhir Thakur, CEO & MD of Tata Electronics, highlighted the pivotal role of the upcoming Fab in advancing India's semiconductor ambitions.
He highlighted the collaboration's access to leading-edge and mature technologies, which will support Tata Electronics' goal of 'Make in India, For the World'.
PSMC, renowned as one of Taiwan's leading pure-play foundry companies, will bring its expertise in logic and memory technologies to the partnership.
Frank Huang, Chairman of PSMC, expressed excitement about the collaboration with Tata Group, envisioning a new era in the global semiconductor industry.
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