Tata Electronics, PSMC complete tech transfer pact for fab

India’s Tata Electronics has completed the Definitive Agreement with PSMC towards establishing a semiconductor fab in Gujarat, India.

As per the agreement, the Taiwanese tech giant will provide design and construction support to build India’s first AI-enabled greenfield fab in Gujarat, license technologies, and provide engineering support to transfer licensed technologies to the Gujarat fab, according to a report in the Hindu.

The ₹910 billion (USD 11 billion) project is expected to create more than 20,000 direct and indirect skilled jobs. 

Tata Electronics is a wholly owned subsidiary of Tata Sons Pvt. Ltd.

The fab is expected to have a manufacturing capacity of up to 50,000 wafers per month and include next-generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency. 

The Gujarat fab will manufacture chips for applications such as power management IC, display drivers, MCUs and high-performance computing logic, addressing the demand in markets such as AI, automotive, computing and data storage, and wireless communication, Tata Electronics said in a statement. 

“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,” N. Chandrasekaran, Chairman, Tata Sons, said in a statement.

 “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,” Frank Huang, Chairman of Powerchip Group and CEO of PSMC, said.

“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,” Huang added.

Tata Electronics said it has already engaged two design firms from Taiwan to create a fab that adheres to global standards of quality, safety and sustainability.

In an interview with CNBC-TV18, Chandrasekaran said, “We will produce logic chips using five different technologies. This achievement has been made possible due to the strong support and partnership we have received from PSMC and Frank Huang, Chairman & CEO of PSMC.” 

Tata Electronics, which currently employs 50,000 people, has plans to increase its workforce by 4-5 times over the next 2-3 years.