In a landmark move towards bolstering India’s semiconductor ecosystem, the Government of India has given the green light to Tata Electronics for constructing a mega semiconductor fabrication facility (‘Fab’) in Dholera, Gujarat. This momentous project, in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC), signifies a significant stride towards the ‘Make in India, For the World’ initiative.
The ambitious endeavor, slated to kick off construction this year, will see a substantial investment of up to INR 91,000 crores (approximately US$11 billion) and is poised to generate over 20,000 direct and indirect skilled jobs in the region. Tata Electronics, a wholly owned subsidiary of Tata Sons Pvt. Ltd., is making its foray into the global semiconductor industry with this strategic move.
Set to become India’s first AI-enabled state-of-the-art Fab, the facility will boast a manufacturing capacity of up to 50,000 wafers per month. It will incorporate cutting-edge factory automation capabilities leveraging data analytics and machine learning to achieve top-tier factory efficiency. The chips produced at this semiconductor Fab will cater to a range of applications including power management IC, display drivers, microcontrollers (MCU), and high-performance computing logic, meeting the burgeoning demand in markets such as automotive, computing and data storage, wireless communication, and artificial intelligence.
N Chandrasekaran, Chairman of Tata Sons, announced the decision to build this semiconductor fab during the 20th Vibrant Gujarat Summit in January 2024. In his statement, he highlighted Tata Group’s legacy of pioneering various sectors in India and expressed confidence that their venture into semiconductor fabrication will further this legacy.
‘The semiconductor industry is poised to become a critical building block in the era of AI-led digitization. By 2030, the global semiconductor industry is projected to reach US$1 trillion, with Indian semiconductor demand expected to exceed US$110 billion. India’s entry into semiconductor manufacturing will substantially de-risk global supply chains and position the country as a key player in the global semiconductor landscape,’ Chandrasekaran stated.
Acknowledging the pivotal role of the Indian government in enabling this initiative, Chandrasekaran added, ‘Today’s announcement is possible due to the enduring vision of the Government of India, under the leadership of Hon’ble Prime Minister Shri Narendra Modi, in defining comprehensive central and state semiconductor policies. Continuous support from the Ministry of Electronics and Information Technology (MeitY), India Semiconductor Mission (ISM), and the Government of Gujarat has been instrumental.’
Dr. Randhir Thakur, CEO & MD of Tata Electronics, emphasized the strategic significance of this milestone. ‘This marks the beginning of a new era for India. Tata Electronics is proud to be at the forefront of strengthening the global semiconductor ecosystem,’ Thakur stated.
‘Our partnership with PSMC will provide access to a wide technology portfolio, from leading-edge to mature nodes, enabling high-volume manufacturing. We are confident that the upcoming Fab will support our ‘Make in India, For the World’ ambitions, meeting the requirements of our global customers for supply chain resilience and addressing the growing domestic demand.’
