Sun Sep 15 11:52:14 UTC 2024: ## Tata Electronics to Build Two More Semiconductor Fabs in Gujarat, Expanding Chip Manufacturing Ambitions

**Ahmedabad, India** – Tata Electronics is planning to establish two additional semiconductor fabrication (fab) facilities in Dholera, Gujarat, as part of its long-term strategy to bolster India’s chipmaking capabilities and cater to global demand. The company’s first fab, a joint venture with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is currently under construction and is slated to begin production in 2026. This first fab is expected to produce chips used in various sectors, including automotive, computing, and AI, with a monthly capacity of 50,000 wafers.

The two additional fabs, planned for construction within the next five to seven years, will be of similar scale to the first one. The specific technologies and production nodes for these future facilities will be determined based on global demand and advancements in the semiconductor industry. Tata Electronics is already exploring potential buyers for chips produced at the first fab, including other Tata Group companies such as Tata Motors, Tata Play, and Tata Teleservices.

This ambitious expansion highlights Tata Electronics’ commitment to establishing a robust domestic semiconductor ecosystem in India. The company is also collaborating with suppliers to create local ancillaries and develop a comprehensive supply chain for chip manufacturing.

Tata’s expansion is part of a broader push by the Indian government to incentivize domestic semiconductor production. The government’s “Semicon India” program aims to attract investments and establish India as a global hub for chip manufacturing. Tata Electronics’ plans, along with other investments from companies like CG Power-Renesas and Kaynes Technology, signal a growing momentum in India’s semiconductor industry.

In addition to the Dholera fabs, Tata Electronics is also constructing a ₹27,000 crore assembly and testing unit in Jagiroad, Assam. This facility, set to begin high-volume production in the second half of 2025, will focus on wire bond, flip chip, and Integrated Systems Packaging technologies.

With these ambitious projects, Tata Electronics is positioning itself to play a significant role in shaping India’s semiconductor landscape and contributing to the nation’s technological advancement.

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