Gujarat, Sep 17 (KNN) In a major step towards bolstering India’s domestic semiconductor manufacturing capabilities, Tata Electronics is building two additional fabrication plants, or fabs, in Dholera, Gujarat.
This expansion is part of the company’s larger strategy to establish itself as a global player in the semiconductor industry.
The move, reported by Mint, aims to meet the growing international demand for semiconductors and build a strong chip-making ecosystem in India.
The first of Tata’s fabs, construction of which began in March 2023 at the Dholera Special Investment Region, is set to be operational by 2026.
This state-of-the-art facility will manufacture chips essential for power management, display drivers, microcontrollers, and high-performance computing. These chips are expected to serve critical sectors such as automotive, artificial intelligence (AI), wireless communication, and data storage.
Once fully operational, the fab will produce up to 50,000 wafers per month, marking a significant step for India’s growing semiconductor industry.
The first phase of this project, worth Rs 91,000 crore, is being developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).
Tata Electronics is moving forward with plans for two more fabs, which will be developed over the next five to seven years. While details on potential partners for these fabs remain unclear, the decision will likely depend on the global semiconductor market at the time.
These new fabs are expected to follow a similar blueprint to the first one, sharing some infrastructure to reduce overall costs.
A senior executive involved in the project mentioned that the construction of common infrastructure will help reduce financial strain on future phases, though substantial investments will still be required.
Tata Electronics is already in discussions with potential buyers for its Dholera-produced chips, with initial customers likely coming from within the Tata Group itself, including Tata Motors, Tata Play, and Tata Teleservices. The company is also focusing on building a local supply chain by collaborating with suppliers and partners to establish ancillary units.
A residential facility for 4,000-5,000 workers is also under construction, further emphasising Tata’s long-term commitment to Dholera.
Tata’s semiconductor push isn’t limited to Gujarat. The company is also constructing a Rs 27,000 crore assembly and testing facility in Jagiroad, Assam.
This 600-acre plant, expected to begin high-volume production by mid-2025, will focus on advanced packaging technologies and will have a daily output capacity of 48 million chips.
Through these projects, Tata Electronics is positioning itself as a central player in India’s semiconductor future, aiming to reduce reliance on global supply chains while boosting domestic production.
(KNN Bureau)
