Tata Electronics, a subsidiary of Tata Sons, has finalized a Definitive Agreement with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to establish India’s inaugural AI-enabled semiconductor fabrication facility in Gujarat. Under this agreement, PSMC will assist in the design and construction of the state-of-the-art greenfield Fab, license a comprehensive range of technologies, and provide engineering support to facilitate the successful transfer of these technologies to the new facility.
The planned Fab is set to have a production capacity of up to 50,000 wafers per month and will incorporate advanced factory automation technologies, utilizing data analytics and machine learning to optimize efficiency. This facility aims to manufacture chips for various applications, including power management integrated circuits, display drivers, microcontrollers, and high-performance computing logic, addressing the increasing demand in sectors like AI, automotive, computing, data storage, and wireless communications.
This partnership will introduce advanced semiconductor technologies and skills to India, laying the groundwork for a self-sufficient semiconductor ecosystem in the country. With an investment of up to INR 91,000 crores (approximately US$11 billion), the Fab is expected to create over 20,000 direct and indirect skilled jobs. This initiative will enable India to meet the rising chip demands of both domestic and global markets. Tata Group’s broader vision for Dholera includes establishing multiple fabs, projected to generate over 100,000 skilled jobs.
N Chandrasekaran, Chairman of Tata Sons, expressed confidence that this collaboration marks a significant milestone, enhancing the global semiconductor supply chain and enabling Tata to play a vital role in the expanding semiconductor market. Dr. Frank Huang, Chairman of Powerchip Group and CEO of PSMC, emphasized the partnership as a mutually beneficial opportunity that positions both PSMC and the Taiwanese ecosystem for substantial gains in the growing Indian market, while also contributing to India’s self-sufficiency in semiconductor manufacturing.
Tata Electronics has also enlisted two prominent design firms from Taiwan to ensure that the Fab meets global standards for quality, safety, and sustainability. This collaboration is expected to enhance the resilience of the global supply chain and effectively respond to the demands of international customers.
