Tata Electronics Ramps Up Semiconductor Ambitions: Sends Hundreds to Taiwan for Training

2 Sources

Tata Electronics is sending hundreds of employees to Taiwan for specialized semiconductor training, as it prepares to launch its first AI-enabled fab facility in India. This move highlights the company's commitment to bridging the talent gap in the growing Indian semiconductor industry.

Tata Electronics' Strategic Move in Semiconductor Manufacturing

Tata Electronics, the electronics arm of the Tata Group, is making significant strides in its semiconductor ambitions by sending hundreds of employees to Taiwan for specialized training. This move comes as the company prepares to launch its first AI-enabled semiconductor fabrication (fab) facility in Dholera, Gujarat, India 12.

Training Partnership with PSMC

Source: Inc42 Media

Source: Inc42 Media

The company has partnered with Powerchip Semiconductor Manufacturing Corporation (PSMC), a Taiwanese firm, to provide crucial training to its workforce. "A couple of hundred" employees have already been sent to PSMC for training in specialized skills required to operate the upcoming fab 1. The training program follows a structured approach, with batches of 50 to 75 people being sent at a time, focusing on different aspects of semiconductor manufacturing 1.

Addressing the Talent Gap

One industry insider emphasized the significance of this initiative, stating, "Talent is the biggest gap" 1. Tata Electronics is addressing this challenge by hiring both fresh college graduates and experienced professionals from the semiconductor industry. The training covers various operations, including equipment handling, yield engineering, process technology, and quality engineering 2.

Ambitious Semiconductor Projects

Tata Electronics is currently working on two major semiconductor projects in India:

  1. A Rs 91,000-crore ($11 billion) fab facility in Dholera, Gujarat, in partnership with PSMC 12.
  2. A Rs 27,000-crore OSAT (Outsourced Semiconductor Assembly and Test) facility in Assam 12.

The Dholera fab is expected to have a manufacturing capacity of up to 50,000 wafers per month and will incorporate next-generation factory automation capabilities 1. It will focus on producing chips for applications such as power management IC, display drivers, microcontrollers, and high-performance computing logic 12.

Job Creation and Economic Impact

These projects are set to generate substantial employment opportunities:

  • The Dholera fab is projected to create over 20,000 direct and indirect skilled jobs 12.
  • The Assam OSAT facility is expected to generate about 27,000 direct and indirect jobs 12.

Timeline and Industry Outlook

Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, has predicted that the first chip from the Dholera unit will be produced by December 2026 1. The Assam OSAT's first phase is expected to become operational by mid-2025 12.

India's Growing Semiconductor Industry

Source: Economic Times

Source: Economic Times

Tata Electronics' initiatives align with India's broader push to establish itself in the global semiconductor market. The Indian government has approved other semiconductor projects, including:

  • Micron Technology's $825 million semiconductor unit in Sanand, Gujarat 2.
  • Kaynes Semicon's OSAT facility in Gujarat with an initial investment of Rs 3,307 crore 2.

According to the Ministry of Electronics and Information Technology (MeitY), India's semiconductor demand is expected to reach $100-110 billion by 2030, up from the current $45-50 billion 2.

Conclusion

Tata Electronics' strategic move to train its workforce in Taiwan demonstrates the company's commitment to developing a robust semiconductor ecosystem in India. As the country aims to become a significant player in the global semiconductor market, initiatives like these are crucial for bridging the talent gap and fostering innovation in the industry.

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