Tata Group’s venture, in collaboration with PSMC, is set to launch India’s first semiconductor chip by 2026 from a state-of-the-art facility in Dholera. With government backing and an investment of Rs 91,000 crore, this initiative aims to elevate India’s position in the global semiconductor market, supporting various industries including EV, telecom, and defense.
India Enters Semiconductor Race with Tata Group’s Mega Plant
Key Highlights
- Tata Group’s partnership with PSMC marks India’s entry into semiconductor chip manufacturing by 2026.
- The Dholera semiconductor facility aims to produce 50,000 wafers per month, starting with 28 nm chips.
- Government support fuels the semiconductor initiative with plans for three new plants, boosting India’s tech self-reliance.
In a groundbreaking move that marks a significant milestone for India’s tech industry, Tata Group, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is gearing up to produce the country’s first semiconductor chip. The ambitious project, centered in Dholera, Gujarat, is slated for completion by 2026, with investments totaling Rs 91,000 crore.
Self-Reliance in Semiconductor Manufacturing
The semiconductor fabrication facility, a collaboration between Tata Electronics and PSMC, aims to kickstart production with a manufacturing capacity of up to 50,000 wafers per month. Frank Huang, Chairman of PSMC, shared with the Economic Times that the facility would initially focus on 28 nanometer (nm) chips, with plans to advance to 22 nm technologies in the future.
This venture is not just about enhancing India’s manufacturing capabilities but also integrating next-generation factory automation, including data analytics and machine learning, to optimize factory efficiency.
Diversifying India’s Semiconductor Production
The Dholera fab facility’s goal extends beyond high-performance computing chips. It aims to diversify its production line to include power management chips crucial for a variety of sectors such as electric vehicles (EV), telecom, defense, automotive, consumer electronics, and more. These power management chips are designed for high voltage and current applications, underscoring their importance in today’s technology-driven world.
PSMC’s expertise in logic and memory foundry segments, backed by its six semiconductor foundries in Taiwan, plays a critical role in this joint venture’s promise to elevate India’s position in the global semiconductor market.
Government Support and Future Plans
The Indian government has shown substantial support for this initiative, approving three semiconductor plant proposals, including two in Gujarat and one in Assam, with a combined estimated cost of Rs 1.26 lakh crore. IT Minister Ashwini Vaishnaw highlighted the government’s commitment to compressing the typical 3-4 year semiconductor fab timeline for production.
Additionally, Tata Semiconductor Assembly and Test Pvt. Ltd’s chip assembly and testing unit in Assam, with an investment of Rs 27,000 crore, and a collaboration between CG Power and Japan’s Renesas in Gujarat’s Sanand, estimated at Rs 7,600 crore, are set to produce 15 million chips per day. These initiatives complement a Rs 22,516-crore chip assembly plant by US-based Micron, further strengthening India’s semiconductor manufacturing ecosystem.
India’s Tech Ambitions
The establishment of these semiconductor manufacturing units marks a giant leap towards India’s self-reliance in semiconductor production. With the world increasingly dependent on semiconductor chips for everything from consumer electronics to defense systems, India’s move into this space is timely.
By 2026, India aims not just to meet its semiconductor needs but also to emerge as a key player in the global semiconductor industry. This venture is a testament to the country’s growing capabilities and ambition in the high-tech manufacturing sector, promising to propel India’s tech industry to new heights.
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