Tata Consultancy Services (TCS) is teaming up with Tata Electronics Pvt Ltd to develop India’s first domestically manufactured semiconductor chips by 2026, according to a senior executive at TCS, as reported by Mint.
Sreenivasa Chakravarti, Vice President and Global Head of TCS’s Digital Engineering division, revealed that his company is playing a crucial role in the chip development process, while Tata Electronics is leading the initiative. TCS, known for its expertise in semiconductor design and engineering, will contribute with software solutions and intellectual property-based products for semiconductor development.
Three Semiconductor Facilities Set to Boost Industry
In February, India Semiconductor Mission approved the construction of three semiconductor manufacturing facilities to advance the sector. Tata Electronics is spearheading two of these major projects. One is an $11 billion greenfield chip manufacturing plant in collaboration with Taiwan’s Powerchip Semiconductor (PSMC) in Dholera, Gujarat, which is set to have an initial output capacity of 50,000 wafers per month.
The second project, a $3.26 billion facility in Assam, will focus on chip assembly and testing. The first batch of chips from the Assam facility is expected to be ready by late 2025 or early 2026, serving industries such as automotive, electronics, power, consumer goods, and healthcare.
Addressing the Design-Manufacturing Gap
Omkar Tanksale, a senior IT research analyst at Axis Securities, noted that it is the first Indian tech services company to build strong expertise in semiconductor engineering and services. The company has already established a significant global presence in semiconductor design, engineering, and software development for chip applications.
Despite this, TCS has yet to venture into the actual chip manufacturing sector, unlike HCL Technologies, which announced a joint venture with China’s Foxconn earlier this year to set up a chip testing facility. The Tata Group’s push into semiconductor production marks a major milestone for India’s technology sector, as it moves towards self-reliance in this crucial industry.
