Tata Electronics goes all guns blazing to power India's AI dreams; teams up with chip giants Himax and PSMC

Tata Electronics has signed an MoU with Taiwanese foundry Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies, a fabless display driver IC and semiconductor manufacturer, to expand India’s display and ultralow power AI sensing product and technology ecosystem.

The three companies are expected to jointly explore the growing market for display semiconductors and ultralow power AI sensing in India as well as globally.

“Tata Electronics, Himax, and PSMC aim to leverage their respective strengths to deliver comprehensive, end-to-end display semiconductor solutions for their mutual customers—from chip design to chip manufacturing and packaging, as well as electronics manufacturing services (EMS) to deliver system-level solutions,” the press release stated.

“This MoU with Himax and PSMC will enable the development of differentiated solutions for display-related semiconductor products for our mutual customers. Together, we will develop next-generation technologies to meet the growing demands for display and ultralow power AI sensing technologies across key industries,” said Dr. Randhir Thakur, CEO and MD of Tata Electronics, in a statement.

The partnership also involves designing and manufacturing next-generation solutions to meet global demand while enhancing supply chain resilience. "We are not setting up a display manufacturing unit. We are going to manufacture display semiconductors," a company spokesperson told Fortune India.

PSMC and Tata Electronics had already signed an agreement in 2024 to establish advanced semiconductor manufacturing capabilities in India. Tata Electronics is reportedly investing ₹91,000 crore to establish India's first high-tech chip manufacturing plant in Dholera, Gujarat, with 50% of the investment subsidised by the central government. The plant will produce 50,000 wafers per month, catering to sectors such as electric vehicles, telecom, and defence.

“Through this collaboration, we aim to bring Himax’s industry-leading expertise in display semiconductors and WiseEye™ ultralow power AI sensing to support India’s 'Made in India' initiative while enhancing global supply chain resilience,” Jordan Wu, Co-Founder and CEO of Himax Technologies, said in a statement.

Additionally, Tata Electronics is setting up a testing and packaging facility (TSAT) in Assam with an investment of ₹27,000 crore, aiming to produce 48 million chips daily.

Tata Electronics' collaboration with Himax Technologies and PSMC on ultralow power AI sensing semiconductor products has not yet confirmed whether production will take place at its Assam facility, the Dholera facility, or another location.