2 weeks Ago
India’s Tata Electronics plans to build two more semiconductor fabs in Dholera, Gujarat, as part of its long-term strategy to make chips locally amid growing global demand for semiconductors, according to a report in the Mint . Taiwan’s PSMC is Tata’s partner for the ₹910 billion (around USD 11 billion) first phase at Dholera. The timeline of the second and third fabs and potential partners are yet to be decided, the report said, quoting sources.
The two new fabs being planned could be of the same scale as the first one. Meanwhile, Tata Consultancy Services (TCS) is collaborating with Tata Electronics as the group aims to introduce India’s first domestically produced chips by 2026, according to another report in Mint . In March, Tata Electronics broke ground at the Dholera site for the first fab, which is expected to produce chips used in power management circuits, microcontrollers, display drivers, and high-performance computing logic used in sectors such as automotive, data storage, computing and AI.
The first fab will have a peak monthly manufacturing capacity of up to 50,000 wafers. Buyers of chips from the first fab may include companies from within the Tata group, such as Tata Motors and Tata Teleservices. In February, the Indian government approved the establishment of three semiconductor manufacturing units.
Tata Electronics is spearheading the development of two of these facilities — the USD 11-billion chip manufacturing plant in collaboration with PSMC in Dholera and the USD 3.26-billion facility in Assam. Tata’s Assam unit, which broke ground last month, is assessing the environmental impact at the site.
The unit will be ready for high-volume manufacturing in the second half of 2025, with an expected daily capacity of 48 million chips. The Assam unit will initially focus on wire bond, flip chip and Integrated Systems Packaging..
