Tata Electronics starts building a semiconductor plant in Gujarat at Rs. 91,000 crore

At Gujarat's Dholera Special Investment Region (DSIR), Tata Electronics Private Limited (TEPL) has started building its ground-breaking Rs 91,000 crore semiconductor fabrication facility. Virtually laying the groundwork for India's first semiconductor factory, Prime Minister Narendra Modi accomplished a major technological first for his nation.

Important Points:

PM Modi Lays Virtual Foundation Stone: Prime Minister Narendra Modi essentially laid the groundwork for India's first semiconductor factory.

Partnership with PSMC: To construct India's first AI-enabled, state-of-the-art fabrication facility, Tata Electronics has teamed up with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC). The new semiconductor factory will produce chips for microcontrollers (MCU), display drivers, power management integrated circuits (ICs), and high-performance logical computation.

Outsourced Semiconductor Assembly and Test (OSAT) plant: The business is also investing Rs 27,000 crore to establish an OSAT plant in Morigaon, Assam. This facility will address expanding global demands across major industry categories like AI, industrial, and consumer electronics by concentrating on critical technologies like Wire Bond, Flip Chip, and Integrated Systems Packaging (ISP).

Production Schedule: The first chip is anticipated to be released by the end of 2026, and the semiconductor factory will be able to produce up to 50,000 wafers per month. It is anticipated that the Assamese facility will start producing commercially even earlier, maybe in late 2025 or early 2026.

Effect on Employment: It is anticipated that this development would create a sizable number of jobs and boost the local economy.

Greenfield Semiconductor Assembly and Test Facility: In addition, Tata Electronics is constructing a cutting-edge, greenfield semiconductor assembly and test facility in Jagiroad, Assam, with an emphasis on critical technologies required for network infrastructure, automotive, and communications applications.

With this investment, Tata Electronics is advancing the nation's electronics manufacturing capabilities and contributing to the government's goal of Atmanirbhar Bharat, which is to establish India as a hub for semiconductor manufacture.