First steel, now silicon chips; TATA Group to set up India’s first fab at an investment of Rs 91,000 Crore
Digital Edge Bureau 02 Mar, 2024 0 comment(s)TATA Groups again becomes an industry pioneer. This time, this is silicon chips. TATA Group, which established India’s first steel making factory, now embarks on setting up India’s first fabrication plant (fab) for manufacturing silicon wafers. Yes, in a significant development, Government of India (GoI) has approved a proposal from Tata Electronics (a TATA Group company) to build a mega semiconductor fab at Dholera in Gujarat in partnership with Taiwan’s PSMC (Powerchip Semiconductor Manufacturing Corporation) at an investment of Rs 91,000 Crore (Approximately $11 Billion).
The upcoming fab will have manufacturing capacity of up to 50,000 wafers per month and will include next generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency. The new semiconductor Fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as automotive, computing and data storage, wireless communication and artificial intelligence.
“Tata Group has a tradition of pioneering many sectors in the country, and we are confident that our entry in semiconductor fabrication will add to this legacy”, said N Chandrasekaran, Chairman, Tata Sons. “We’re proud to lead India’s entry into global semiconductor fabrication. This will also accelerate our progress towards providing high-technology employment opportunities for the youth of India”.
“This announcement is possible because of 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, as well as continuous advocacy and support from Ministry of Electronics and Information Technology (MeitY), India Semiconductor Mission (ISM) and the Government of Gujarat,” added Chandrasekaran.
Dr. Randhir Thakur, CEO & MD, Tata Electronics said, “This marks a beginning of a new era for India. Tata Electronics is proud to play a prominent role in strengthening the global semiconductor ecosystem. Our partnership with PSMC provides access to a broad technology portfolio in leading edge and mature nodes including 28nm, 40nm, 55nm, 90nm & 110nm and also collaboration for high volume manufacturing. We’re confident that the upcoming fab will support our ambitions of ‘Make in India, For the World’. We will be able to serve our global customers’ requirements for supply chain resilience and meet the growing domestic demand.”
This new initiative from Tata Electronics will bring to India a portfolio of cutting-edge semiconductor technologies, advanced skill set and talent, and a network of semiconductor manufacturing suppliers and ecosystem partners, resulting in foundational development of indigenous semiconductor ecosystem in India. With this Fab, India for the first time will be able to address the growing chip demand of domestic and global customers across automotive, computing, communications, and artificial intelligence markets. Tata Group’s multi-fab vision for Dholera is projected to create over 1,00,000 skilled jobs and establish India as one of the key supply chain partners to the global semiconductor industry.
With AI-led digitization of every aspect of human existence, semiconductors will be the most critical building block. By 2030, Global semiconductor industry is expected to grow to $1 Trillion and Indian semiconductor demand is expected to cross $110 Billion. India’s entry in the semiconductor manufacturing will significantly de-risk global supply chains and will make India a very important player in the global semiconductor industry.