Tata Electronics concludes pact with Taiwan-based PSMC for Rs 91,000-crore chip manufacturing unit in Gujarat's Dholera

Tata Electronics on Thursday said it has concluded an agreement with Taiwan-based Powerchip Semiconductor Manufacturing Corporation, which will provide technology support for the Dholera wafer fab of the Indian tech major.

As per the agreement, PSMC will provide design and construction support to build India's first AI-enabled greenfield fab in Gujarat, license a broad portfolio of technologies and provide engineering support to the fab unit.

"We are pleased to partner with PSMC, whose technology and expertise will significantly accelerate our roadmap to pioneer semiconductor manufacturing in India. It will position us to play a key role in the growing semiconductor market to serve global customers," Tata Sons Chairman N Chandrasekaran said.

The company is setting up a chip manufacturing unit in Dholera at an investment of up to Rs 91,000 crore (about $11 billion).

"Tata Group's multi-fab vision for Dholera is projected to create over 1,00,000 skilled jobs," the statement said.

Tata Electronics' Dholera-based Fab will have a manufacturing capacity of up to 50,000 wafers per month.

"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," Powerchip Group, Chairman and CEO of PSMC, Frank Huang said.