Tata Electronics partners with Merck to boost India’s chip capabilities

India’s Tata Electronics Private Limited and German science and technology company Merck have signed a Memorandum of Understanding (MoU) on a strategic collaboration to jointly develop capabilities in semiconductor materials, semiconductor fabrication infrastructure, and specialty chemical and gas distribution in India.

The companies have come to an understanding whereby, Merck will offer its full suite of products and services, including high-purity electronic materials, advanced gas and chemical delivery systems, turnkey fab infrastructure services, and its Material Intelligence solutions powered by AI, for Tata Electronics’ upcoming fab in Dholera in the western state of Gujarat, according to a media release.

As part of this partnership, Merck will also share best practices in safety and manufacturing excellence, and provide access to platforms such as Athinia, a secure data analytics platform, for collaboration on relevant information among participants across the semiconductor industry. Additionally, the partnership encompasses plans for localised warehousing, raw material supply chain development, cultivation of talent, and the establishment of industry processes and standards in India, the media release said.

“This strategic partnership with Merck brings not only world-class expertise in advanced materials but also a shared commitment to the highest standards of safety and manufacturing excellence,” said Dr. Randhir Thakur, CEO and MD of Tata Electronics. “By leveraging Merck’s decades of global experience in chemical safety, process optimisation, and digital tools, we will build a resilient ecosystem and accelerate the timely execution of our fab in Dholera, Gujarat.”  

“The collaboration with Tata Electronics reflects our long-standing strategy: to be a trusted partner in key growth markets, enabling scale through safety, precision, and innovation,” said Dr. Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics. “Together, the aim is to build a resilient and future-ready materials ecosystem that supports India’s semiconductor aspirations.”

The MoU supports the goals of the India Semiconductor Mission and reflects Tata Electronics’ and Merck’s role as early movers in enabling indigenous semiconductor capabilities. Tata Electronics is building India’s first fab in Dholera, Gujarat, with a total investment of about USD 11 billion. The fab in Dholera will produce semiconductor chips for applications across automotive, mobile devices, AI, and other key segments, to serve customers globally.