Tata Electronics Expands Semiconductor Manufacturing in India

23 Sep 2024 CW Team

Tata Electronics is set to build two additional semiconductor fabrication plants (fabs) in Dholera, Gujarat, enhancing its strategy to establish a domestic chip manufacturing ecosystem. This initiative aims to meet rising international demand and solidify Tata's position in the global semiconductor industry.

The first fab, currently under construction in the Dholera Special Investment Region, is expected to open in 2026. It will produce chips for power management circuits, display drivers, microcontrollers, and high-performance computing logic, vital for sectors like automotive, data storage, wireless communication, and artificial intelligence (AI). At peak capacity, the fab will manufacture up to 50,000 wafers monthly.

Valued at ?91,000 crore, the first phase is being developed in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC). Plans for the second and third fabs, also on a similar scale, are anticipated to begin construction within five to seven years, although future partnerships with PSMC remain uncertain.

Tata Electronics is in discussions with potential chip buyers, primarily within the Tata Group, including Tata Motors and Tata Teleservices. The company is also developing a robust supply chain ecosystem and constructing a residential facility for 4,000-5,000 workers at the Dholera site.

In parallel, Tata is advancing a ?27,000 crore assembly and testing unit in Jagiroad, Assam, which aims to start high-volume production by mid-2025. This facility will focus on core technologies like wire bond and flip chip, with a daily output capacity of 48 million chips.

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