India’s First Semiconductor Fab to Begin Production by 2026

Introduction:

In a significant stride towards technological self-reliance, Tata Group, one of India’s foremost conglomerates, is set to embark on a groundbreaking journey to establish India’s first semiconductor fabrication (fab) unit.

This venture holds the promise of reshaping the country’s technological landscape and bolstering its position in the global semiconductor industry.

Amidst a global backdrop of semiconductor shortages and heightened awareness of supply chain vulnerabilities, Tata Group’s ambitious plans mark a pivotal moment in India’s quest for semiconductor sovereignty.

Tata Group’s Semiconductor Initiative:

Tata Electronics Pvt. Ltd, a subsidiary of Tata Sons, aims to commence commercial production from India’s maiden semiconductor fabrication unit by 2026. This state-of-the-art facility will initially focus on producing semiconductor chips at 28 nanometers.

Project Leads: The Tata Group is leading this initiative, partnering with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) for technical expertise .

Location: The upcoming fab situates itself in Dholera, Gujarat. The Tata Group has secured around 160 acres for this massive undertaking .

Investment and Timeline: The ambitious project is estimated to cost Rs 91,000 crore. The Indian government is offering subsidies to make it commercially viable.

Initial Production Capacity: The Dholera plant is expected to begin manufacturing 28 nanometer chips, marking a significant step but not representing the cutting edge of chip technology. However, there are plans for potential future upgrades to 22 nanometer technology.

Significance: This project holds strategic importance for India. It aims to:

Reduce reliance on foreign chip imports, making the country more self-sufficient in semiconductor technology.
Meet the rising domestic demand for chips in various sectors like automobiles, computing, and artificial intelligence [Business Standard].

Led by N. Chandrasekaran, Chairman of Tata Sons, the endeavor signals a strategic move towards diversifying Tata Group’s portfolio and catalyzing technological innovation across various sectors.

“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

Industry Endorsement and Expert Perspectives:

The Tata Group’s semiconductor initiative has garnered widespread acclaim from industry experts and stakeholders.

Ashok Chandak, President of the Indian Electronics and Semiconductor Association, praised the effort. He sees it as a transformative move to position India as a global semiconductor hub.

Ajai Chowdhry, co-founder of HCL, and member of the Indian Semiconductor Mission’s advisory committee, also commended the initiative. He views it as proof of India’s growing prominence in the semiconductor industry.

“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.

Conclusion:

Tata Group’s ambitious venture to establish India’s first semiconductor fabrication unit signifies a watershed moment in the country’s technological evolution.

As India endeavors to carve its niche in the global semiconductor landscape, strategic collaborations, innovation-driven policies, and concerted efforts by industry stakeholders will be pivotal.

With Tata Group leading the charge, India’s semiconductor dream inches closer to fruition, heralding a new era of technological prowess and economic resilience.