Tata ties up with Taiwan's PSMC to set up semiconductor fab

Tata Electronics Private Limited (TEPL) has partnered with Taiwanese chipmaker Powerchip Semiconductor Manufacturing Corp. (PSMC) to set up a semiconductor fab unit in Gujarat's Dholera for ₹91,000 crore, according to a press note released by the Union Cabinet.

The fab will produce 50,000 wafer starts per month (WSPM) of high-performance chips with 28-nanometre technology including power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, and power electronics among others.

PSMC is known for its expertise in logic and memory foundry segments. The chipmaker has 6 semiconductor foundries in Taiwan.

Meanwhile, Tata Group-owned Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam, with an investment of ₹27,000 crore. TSAT is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies.

The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved the establishment of three semiconductor units under 'Development of Semiconductors and Display Manufacturing Ecosystems' in India.  All three units will start construction within the next 100 days. The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified in 2021 with a total outlay of ₹76,000 crore.

Fortune India last week reported that India is working on the entire semiconductor value chain and will roll out the first 'Made in India' chip by December 2024. The semiconductor value chain starts with design. The next part of the value chain is semiconductor fab and then comes the assembly, testing, marking, and packaging (ATMP).

For assembly, testing, marking, and packaging (ATMP), CG Power has joined hands with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand to set up a semiconductor unit in Sanand, Gujarat. The unit will cost ₹7,600 crore. Renesas is a semiconductor company focussed on specialised chips. It operates 12 semiconductor facilities and is an important player in microcontrollers, analog, power, and System on Chip (SoC) products. The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.

Together, all these units will generate 20,000 advanced technology jobs and about 60,000 indirect jobs, the Centre says. They will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor-consuming industries, the government says.

"Within a very short time, India Semiconductor Mission has achieved four big successes. With these units, the semiconductor ecosystem will get established in India. India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication. Advanced packaging technologies will be indigenously developed in India with today’s announcement," the government says.

In June 2023, the Union Cabinet approved the proposal of Micron for setting up a semiconductor unit in Sanand, Gujarat. Construction of this unit is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the unit.