Tata Electronics plans two additional semiconductor fabs in Gujarat

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Tata Electronics plans two additional semiconductor fabs in Gujarat

Tata Electronics plans two additional semiconductor fabs in Gujarat

Industry News
Sep 18,24

The plant aims to reach a peak production capacity of 50,000 wafers per month.

Tata Electronics plans two additional semiconductor fabs in Gujarat

Tata Electronics is reportedly planning to establish two more semiconductor fabrication plants at its Gujarat site, where its first fab is currently under construction. This expansion aims to boost local production and meet growing global demand.

The initial fab, being developed in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) in Dholera, involves an investment of Rs 910 billion and is expected to commence production by 2026.

Decisions on the timing and partners for the additional fabs will be made after evaluating the performance of the first facility and global semiconductor market trends. The new fabs are anticipated to mirror the scale of the initial plant, with specifics on technology and production to be determined once the first unit achieves full capacity.

The foundation for the first fab, which began in March at the Dholera Special Investment Region, will focus on producing chips for power management circuits, display drivers, microcontrollers, and high-performance computing logic. The plant aims to reach a peak production capacity of 50,000 wafers per month.

Infrastructure developed for the initial fab may be utilised for the new facilities, potentially reducing investment costs for subsequent phases. Tata Electronics is also working on agreements with major buyers, including Tata Group companies, and is constructing a residential complex for 4,000-5,000 workers to support the project. Additionally, the company is developing a local semiconductor supply chain ecosystem.

In Assam, Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is setting up a Rs 270 billion chip assembly and testing unit, further supported by government incentives for semiconductor production.

(moneycontrol)