India’s first semiconductor fab to begin production in 2026
NEW DELHI : Tata Group aims to begin commercial production from India’s first semiconductor fabrication unit by 2026, an aggressive timeline considering the country’s long wait to become self-reliant in chips that power technology ranging from smartphones to defence systems.
Tata Electronics Pvt. Ltd’s plant in Assam will begin with producing semiconductor chips starting at 28 nanometres, said N. Chandrasekaran, chairman of Tata Sons, the group’s holding company.
The plant will start production by late 2025 or early 2026, serving a variety of sectors including automotive, power, electronics, consumer, and medical, he said.
The unit is among a few semiconductor fabrication projects that India has approved, which includes another plant in Dholera, Gujarat by Tata-PSMC, a partnership between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp.
“We have a partner (PSMC) who is very willing and we have assembled a team. So we are looking forward to going live in 2026, and Assam will be done earlier. We may go for commercial production in Assam even in late 2025 or early 2026,” Chandrasekaran said.
He was speaking on the sidelines of a foundation laying ceremony in Dholera on Wednesday for three semiconductor fabrication units–including the two Tata projects and an outsourced semiconductor assembly and test facility by CG Power and Industrial Solutions Ltd in partnership with Japan’s Renesas Electronics Corp.
India has also approved a $11.5 billion semiconductor project by Israel’s Tower Semiconductor.
The total investment for these projects is around ₹1.25 trillion.
“PSMC has given us access to a wide portfolio of technology. Semicon is the foundational industry for everything digital. We will create more than 50,000 jobs and this is just the beginning,” Chandrasekaran said.
In Assam, the group aims to create 25,000 additional jobs.
Chandrasekaran said the Assam unit will have the capability to produce multiple chips starting from 28 nanometres, with plans for future advancements to 22 nm.
Semiconductor chip shortages during the global pandemic lockdowns heightened realisation of India’s dependency on international supply chains, the Tata chief said, adding that a domestic semiconductor industry would play a defining role in multiple industries.
“It is very important for India to become a semiconductor nation,” Chandrasekaran said.
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Published: 13 Mar 2024, 06:40 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.