Tata Group and Taiwan's PSMC to Establish India's First AI-Enabled Semiconductor Fab in Gujarat

India has the promise to be a hi-tech producer of semiconductors: PSMC's Frank Huang

"India has the promise to be a hi-tech producer of semiconductors and reduce the country's dependency on imports on the back of growing demand for more electronics and hi tech products" said Frank Huang, chairman of the Taiwanese giant Powerchip Semiconductor Manufacturing Corporation (PSMC). Huang was in India to sign the definitive agreement with the Tata group. "The agreement will work towards fulfilling Indian Prime Minister , Narendra Modi's vision to make India semiconductor ready" he said. PSMC has its largest semiconductor capacities in Taiwan and outside of Taiwan, India will be one of our major suppliers, he said. Huang said PSMC finds the partnership with Tatas a perfect match. " Most semiconductor giants rarely license their technology.In terms of the cost structure, capabilities, government support offered, India and Tatas are the perfect fit for us, he said PSMC had been hunting for a suitable company in India after the PMO asked the Taiwanese company to shortlist a partner in February. "We had several rounds of discussions with many potential companies. But we found an ideal partner in Tatas," Huang said. PSMC will provide design and construction support to build India's first AI-enabled state-of-the-art greenfield Fab in Gujarat, license a broad portfolio of technologies and provide engineering support to successfully transfer licensed technologies to the Gujarat Fab. "Semiconductors are fundamental for the future and we need strong capability," said N Chandrasekaran, chairman of Tata Sons, emphasising the prime minister's decisiveness and commitment which played a significant role to stitch this tie-up. This comprehensive technology partnership with PSMC will pave the way for innovation, drive growth, and strengthen the global semiconductor supply chain, Chandrasekaran said. Highly skill intensive, Tata Electronics has already trained 400 employees, with more batches set to travel to Taiwan as very specialised skills are required for the manufacture of chips. With a total investment of up to INR 91,000 crores (~US$11bn), the Fab will create over 20,000 direct and indirect skilled jobs. Tata Group's multi-fab vision for Dholera is projected to create over 100,000 skilled jobs. The new semiconductor Fab will manufacture chips for applications such as power management IC , display drivers and microcontrollers (MCU) addressing the growing demand in markets such as AI, automotive, computing and data storage, and wireless communication. Tata Electronics has already roped in several potential buyers for the chips produced at the Dholera Fab. Tata group companies such as Tata Motors and Tata Teleservices also consume integrated circuits. The group is also working on establishing a robust supply chain ecosystem by collaborating with suppliers and partners to build local ancillary units around the manufacturing locations, officials said.

Tata Electronics partners with Taiwan's PSMC to launch India's first AI-enabled semiconductor Fab in Gujarat

Mumbai: Tata Electronics, a wholly owned subsidiary of Tata Sons said it has completed the Definitive Agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan. As per the agreement, PSMC will provide design and construction support to build India's first AI-enabled state-of-the-art greenfield Fab in Gujarat, license a broad portfolio of technologies and provide engineering support to successfully transfer licensed technologies to the Gujarat Fab. "This Fab will have a manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency. The new semiconductor Fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as AI, automotive, computing and data storage, and wireless communication" a company release said. This agreement between Tata Electronics and PSMC will bring to India a portfolio of cutting-edge semiconductor technologies, advanced skill set and talent, and a network of semiconductor manufacturing suppliers and ecosystem partners, setting the foundation for an indigenous semiconductor ecosystem in India. With a total investment of up to INR 91,000 crores (~US$11bn), the Fab will create over 20,000 direct and indirect skilled jobs. With this Fab, India for the first time will be able to address the growing chip demand of domestic and global customers. Tata Group's multi-fab vision for Dholera is projected to create over 1,00,000 skilled jobs. N Chandrasekaran, Chairman, Tata Sons, said, " This collaboration is a key milestone, and I am confident that our comprehensive technology partnership with PSMC will pave the way for innovation, drive growth, and strengthen the global semiconductor supply chain. It will position us to play a key role in the growing semiconductor market to serve global customers." Dr Frank Huang, Chairman of Powerchip Group and CEO of PSMC, said, "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. I strongly believe that our partnership will be foundational to the India-Taiwan collaboration in semiconductors and will inspire more commercial and strategic tie-ups between the two sides." Notably, Tata Electronics has already engaged two esteemed design firms from Taiwan to create a top-tier Fab that adheres to global standards of quality, safety, and sustainability. The collaboration between Tata Electronics, PSMC and the Taiwanese ecosystem is poised to strengthen the resilience of the global supply chain and effectively cater to the needs of global customers.

Tata Electronics and Powerchip Semiconductor Manufacturing Corporation to build India's first semiconductor fab

The company said the new semiconductor fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as AI, automotive, computing and data storage, and wireless communication.Tata Electronics on Thursday said it has completed the Definitive Agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) wherein the Taiwanese major will provide design and construction support to build India's first AI-enabled greenfield fab in Gujarat. In addition, PSMC will license a broad portfolio of technologies and provide engineering support to successfully transfer licensed technologies to the Gujarat fab which will have a manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities deploying data analytics and machine learning to achieve efficiency. The company said the new semiconductor fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as AI, automotive, computing and data storage, and wireless communication. "This pioneering agreement between Tata Electronics and PSMC will bring to India a portfolio of cutting-edge semiconductor technologies, advanced skill set and talent, and a network of semiconductor manufacturing suppliers and ecosystem partners, setting the foundation for an indigenous semiconductor ecosystem in India," the company said in a statement. Further, it called this a 'seminal moment' in positioning India as a trusted partner in the global semiconductor supply chain and accelerating the country's journey towards being a global semiconductor manufacturing hub.

India Inches Closer To Getting Its First Semiconductor Fab Unit

This comes seven months after the Union Cabinet approved the semiconductor fab to be set up by Tata Electronics in partnership with PSMC Tata Electronics on Thursday (September 26) said that it has signed a definitive agreement with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) to establish its first semiconductor fab unit in Gujarat's Dholera. Under the agreement, PSMC will provide design and construction support to build the AI-enabled greenfield plant in Gujarat. The Taiwanese electronics manufacturing giant will also license a broad portfolio of technologies and offer engineering support to Tata Electronics' unit in Gujarat. In a statement, Tata Electronics also said that PSMC will "bring to India" a portfolio of "cutting-edge semiconductor technologies, advanced skill set and talent, and a network of semiconductor manufacturing suppliers and ecosystem partners, setting the foundation for an indigenous semiconductor ecosystem in India". The upcoming semiconductor fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic. The company said that the proposed unit will cater to markets such as AI, automotive, computing and data storage, and wireless communication. N Chandrasekaran, chairman at Tata Sons said, "This collaboration is a key milestone, and I am confident that our comprehensive technology partnership with PSMC will pave the way for innovation, drive growth, and strengthen the global semiconductor supply chain." The conglomerate' semiconductor arm also confirmed that the manufacturing unit will create over 20,000 direct and indirect skilled jobs. Also, its "multi-fab vision" for Dholera is projected to create over 1 Lakh skilled jobs, added the company. Chiming in, PSMC CEO Frank Huang said, "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." The finalisation of the agreement comes nearly seven months after the Union Cabinet, in later February, approved the country's first semiconductor fab to be set up by the Tata Group in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC). Tata Electronics, throughout the year, has signed agreements and formed partnerships with various companies across the globe to build India's first semiconductor fabrication plant. It has already "engaged" two esteemed design firms from Taiwan to create the fab unit at Dholera.