India’s Semiconductor Goals: Tata And Taiwan’s PSMC Seal Deal For Technology And Design Support For Dholera's Wafer Fab

Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) have finalised their agreement to provide technological support for Tata's upcoming wafer fabrication facility in Dholera, India.

Under this agreement, PSMC will assist with the design and construction of India's first AI-enabled greenfield fab in Gujarat — offering a broad range of licensed technologies and engineering expertise.

The Taiwanese firm will help transfer these licensed technologies to Tata's fab.

Tata Group is investing up to Rs 91,000 crore (around $ 11 billion) to establish the chip manufacturing unit, which will have the capacity to produce up to 50,000 wafers per month.

The fab is expected to create over 20,000 direct and indirect skilled jobs, and Tata Group's broader vision for multiple fabs in Dholera could generate more than 100,000 skilled positions.

With these developments, for the first time, India aims to meet the growing domestic and global demand for semiconductors.

Tata Sons chairman N Chandrasekaran highlighted the importance of this partnership, stating, "This collaboration marks a significant milestone. Our comprehensive technology partnership with PSMC will foster innovation, drive growth, and strengthen the global semiconductor supply chain. It will enable us to play a crucial role in serving global semiconductor markets."

The Dholera fab will produce chips for applications such as power management ICs, display drivers, microcontrollers, and high-performance computing logic, addressing the increasing demand in sectors like AI, automotive, computing, data storage, and wireless communication.