Tata Electronics and Tata Consultancy Services (TCS) are set to develop India's first domestically manufactured chips by 2026, according to recent reports. Sreenivasa Chakravarti, Vice-President and Global Head- Digital Engineering, TCS, emphasised TCS’s role in semiconductor design and engineering, with Tata Electronics spearheading the manufacturing process. Chakravarti also noted TCS’s involvement in providing software solutions and intellectual property for semiconductor products.

In February, the India Semiconductor Mission approved the establishment of three semiconductor facilities to boost the sector. Tata Electronics is leading two of these initiatives. The first is an $11-billion greenfield chip manufacturing plant in Dholera, Gujarat, developed in collaboration with Taiwan's Powerchip Semiconductor (PSMC), with an initial output capacity of 50,000 wafers per month. The second is a $3.26-billion facility in Assam, focusing on chip assembly and testing. Tata Electronics aims to commence chip production at the Assam facility by late 2025 or early 2026, targeting industries such as automotive, electronics, power, consumer goods, and healthcare.

Omkar Tanksale, Senior IT Research Analyst, Axis Securities, highlighted TCS’s emerging expertise in semiconductor engineering and services. TCS has established a strong presence in semiconductor design, engineering, and software development globally. However, unlike HCL Technologies, which has partnered with China’s Foxconn to set up a chip testing facility, TCS has yet to venture into chip manufacturing. 

(Business Standard)