Tata, PSMC seal tech transfer pact for Dholera fab facility

Tata Electronics has signed a definitive agreement with Taiwanese foundry Powerchip Semiconductor Manufacturing Corp. (PSMC) to set up India’s first AI-enabled semiconductor fabrication plant in Dholera, Gujarat.

Under the deal, PSMC will offer design and construction support to help build the facility. Additionally, they will provide a broad portfolio of licensed technologies and engineering support for transferring these technologies to the new fab.

The facility will produce up to 50,000 wafers monthly and will have next-generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency, a statement said.

With a total investment of up to ₹91,000 crore (about $11 billion), the facility will create over 20,000 direct and indirect skilled jobs.

The new facility will produce chips for a range of uses, including power management, display technology, control devices, and advanced computing. This will meet the increasing needs of industries like artificial intelligence, automotive, computing, data storage, and wireless communication, the statement added.

N. Chandrasekaran, chairman of Tata Sons Ltd, said, “This collaboration is a key milestone, and I am confident that our comprehensive technology partnership with PSMC will pave the way for innovation, drive growth, and strengthen the global semiconductor supply chain. It will position us to play a key role in the growing semiconductor market and serve global customers.”

Frank Huang, chairman of Powerchip Group and CEO of PSMC, said, “We are excited to collaborate with Tata Electronics on this pioneering initiative to establish India’s first semiconductor Fab in Gujarat.”

Huang said the deal reflects PSMC’s commitment to providing cutting-edge technology and expertise, helping Tata Electronics create a state-of-the-art facility to catalyze India’s semiconductor landscape.

“This partnership represents a win-win situation, as it positions PSMC and the Taiwanese ecosystem to gain a significant first-mover advantage in the rapidly expanding Indian market while helping India achieve self-reliance in semiconductor manufacturing,” he added.

Tata Electronics has partnered with two Taiwanese design firms to build a state-of-the-art manufacturing unit. PSMC, a major global producer, operates six facilities in Taiwan and manufactures more than 2.1 million large-scale silicon wafers each year.