Tata Group’s new semiconductor plant in Dholera could unveil India’s first indigenous chip in the next two years. The Rs. 91,000 crore facility in Gujarat is a joint venture between Tata and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). This fab can produce up to 50,000 wafers per month. It will also deploy next-generation automation capabilities with machine learning.
The Plan Will Begin With 28nm Chips
In an interview with the Economic Times, the chairman of PSMC, Frank Huang, revealed that Dholera will first manufacture 28nm chips. Gradually, the plant will move over to the more advanced 22mm chips. This facility will produce high-performance compute chips and assemble power management chips for electric vehicles, defense, consumer electronics products, and telecom, among other sectors.
Prime Minister Narendra Modi will lay the foundation stone of the Tata-PSMC chip fabrication plant in Dholera on March 13, 2024. “13th March 2024 – a special day in India’s efforts to become a hub for semiconductors,” he wrote in a post on the microblogging platform X (formerly known as Twitter). In a public statement, the Indian IT minister Ashwini Vaishnaw said, “A typical semiconductor fab timeline for production is 3-4 years.” However, the government will try to shorten it for quicker turnouts.
Considering the significance of semiconductors in various industries and the importance of making indigenous chips in the country, the government has approved three plant proposals. Two will be set up in Gujarat, and one will be set up in Assam (with an investment of Rs. 27,000 crore). The total cost of these plans is estimated to be around Rs. 1.26 lakh crore.
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