Tata Electronics to build two semiconductor manufacturing fabs in Gujarat

by Psu Connect
Date: 17-09-24

The plant will focus on manufacturing chips for power management circuits, display drivers, microcontrollers, and high-performance computing logic.

Tata Electronics to build two semiconductor manufacturing fabs in Gujarat

Tata Electronics is building two additional fabrication plants, known as fabs, in Dholera, Gujarat, according to officials.

This expansion is part of the company’s broad strategy to develop a domestic chip manufacturing ecosystem that caters to increasing international demand and establishes the company as a strong presence in the global semiconductor industry.

The Construction of the first fab is already underway, with foundation work taking place at the Dholera Special Investment Region, where Tata Electronics broke ground in March this year.

The plant will focus on manufacturing chips for power management circuits, display drivers, microcontrollers, and high-performance computing logic.

These chips will be vital in sectors such as automotive, data storage, wireless communication, artificial intelligence (AI), and more. At peak capacity, the first fab is expected to manufacture up to 50,000 wafers each month.

The first phase of the project, valued at Rs 91,000 crore, is being developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). Production at the first fab is scheduled to begin by 2026.

The second and third fabs are expected to be on a similar scale to the first, with plans to commence construction within the next five to seven years.

The infrastructure for all three fabs may share common elements, some of which are being constructed as part of the first phase. This shared infrastructure could help reduce the financial outlay required for subsequent phases, though the investment will still be substantial, said a senior executive involved in the project.