Tata Electronics to build India's 1st semiconductor wafer plant
What's the story
Tata Electronics, a subsidiary of the Tata Group, is preparing to set up India's first large-scale semiconductor wafer manufacturing facility. The plant will use an older 90-nanometer (nm) process technology, instead of the more advanced 28nm node initially planned. The move comes as part of India's broader efforts to establish a self-sustaining domestic chip industry.
Production plans
Collaboration with Taiwan's Powerchip Semiconductor
The Dholera semiconductor fab will produce chips across technology nodes from 28nm to 110nm, a Tata Electronics spokesperson told Bloomberg.
The company has partnered with Taiwan-based Powerchip Semiconductor Manufacturing Corp (PSMC) for technology support on the project.
PSMC spokesperson Eric Tang confirmed that the collaboration covers multiple technology nodes, starting with more mature nodes before moving up to advanced processes like 28nm.
Strategic importance
Tata Group's multi-billion dollar bet on semiconductors
The Dholera fab is key to Prime Minister Narendra Modi's vision of creating a domestic semiconductor ecosystem and reducing reliance on imports.
The Tata Group is investing billions in semiconductor manufacturing and assembly plants as India seeks to become a global chip manufacturing hub.
However, the country is entering an industry dominated by established players such as Taiwan, South Korea, and the US who have built their capabilities over decades.
Market landscape
Starting with less lucrative segment of semiconductor market
While 28nm chips are commercially important in sectors like automobiles, consumer electronics, communication equipment, and industrial applications, starting with 90nm would put Tata in a less lucrative segment of the semiconductor market.
The Indian government recently approved ₹1.28 trillion ($13.3 billion) in new incentives to boost chip design, manufacturing equipment, and semiconductor supply chains.
This funding will support future investments but won't offset spending already committed by companies such as Tata Electronics for its Dholera facility.