Tata Electronics is poised to expand its semiconductor manufacturing operations significantly by establishing two additional fabrication plants at the same location where its inaugural semiconductor facility is currently under construction in Gujarat. This strategic move is aimed at bolstering local production capabilities and addressing the burgeoning global demand for semiconductor components, as reported by Mint.
The initial semiconductor fabrication plant is being developed in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) in Dholera, with an impressive investment of Rs 91,000 crore. The facility is anticipated to commence production by the year 2026, according to the report.
The timing and selection of partners for the two new fabrication plants will be determined in the coming years, following an evaluation of the performance of the first plant and prevailing global semiconductor industry trends, as indicated by a source. These additional fabs will be constructed on a similar scale to the initial facility, with detailed technology and production specifications being finalized once the first plant reaches its full operational capacity.
Currently, foundational work for the first fab has commenced, beginning in March at the Dholera Special Investment Region, as reported by a senior government official. Despite the extensive plans, Tata Electronics has not yet provided a response to inquiries made by Mint. The primary focus of the first semiconductor fab will be on producing chips for various applications, including power management circuits, display drivers, microcontrollers, and high-performance computing logic.
The fab is set to serve diverse sectors such as automotive, computing, data storage, wireless communication, and artificial intelligence, with an expected peak production capacity of up to 50,000 units per month. To facilitate the planned expansion, some of the infrastructure developed for the initial facility may be utilized across all three fabrication plants, which could potentially lower the overall investment required for subsequent phases of development, as noted in the report.
Additionally, Tata Electronics is engaged in finalizing agreements with potential buyers, including several Tata Group companies like Tata Motors, Tata Play, and Tata Teleservices, which are significant consumers of integrated chips. As part of its comprehensive development plan, Tata Electronics is also constructing a residential complex designed to house 4,000 to 5,000 workers. The company is collaborating with suppliers and partners to establish a robust local semiconductor supply chain ecosystem to support its operations.
Furthermore, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is undertaking the development of a Rs 27,000 crore chip assembly and testing facility in Jagiroad, Assam. This initiative is part of the government’s broader push to incentivize semiconductor production within the country.
Tata Electronics is a leading player in semiconductor manufacturing, with a significant investment in establishing advanced fabrication facilities. Partnering with Taiwan’s Powerchip Semiconductor Manufacturing Corporation, the company aims to boost local production and meet global demand. Tata Electronics focuses on producing chips for diverse applications, including automotive and artificial intelligence, while fostering a robust supply chain ecosystem.
