Tata Electronics and PSMC sign pact for Rs 91,000 crore chip manufacturing unit

Tata Electronics has completed a Rs 91,000 crore Definitive Agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan, that will provide technology support for the Dholera wafer fab of the Indian tech major.

With a total investment of up to Rs 91,000 crore (around USD11 billion), the Fab will create over 20,000 direct and indirect skilled jobs. With this Fab, India for the first time will be able to address the growing chip demand of domestic and global customers. Tata Group's multi-fab vision for Dholera is projected to create over 1,00,000 skilled jobs. 

As per the agreement, PSMC will provide design and construction support to build India's first AI-enabled state-of-the-art greenfield Fab in Gujarat, license a broad portfolio of technologies and provide engineering support to successfully transfer licensed technologies to the Gujarat Fab.

This Fab will have manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency. 

"We are pleased to partner with PSMC, whose technology and expertise will significantly accelerate our roadmap to pioneer semiconductor manufacturing in India," said N Chandrasekaran, Chairman, Tata Sons. 

"This partnership represents a win-win situation, as it positions PSMC and the Taiwanese ecosystem to gain a significant first-mover advantage in the rapidly expanding Indian market, while helping India achieve self-reliance in semiconductor manufacturing," said Dr Frank Huang, Chairman of Powerchip Group and CEO of PSMC. Tata Electronics has already engaged two esteemed design firms from Taiwan to create a top-tier Fab that adheres to global standards of quality, safety, and sustainability.