Tata Electronics breaks ground for Rs 91,000 crore semiconductor plant in Gujarat

• Prime Minister Shri Narendra Modi laid the foundation stone for India’s first semiconductor fab virtually on Wednesday.
• The company is also setting up Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam.
• Tata electronics receives approval letter from the Gujarat government to commence the project.

AHMEDABAD : In a historic moment for India, Tata Electronics Private Limited (TEPL) has carried out the groundbreaking of its Rs 91,000 crore semiconductor fabrication facility at the Dholera Special Investment Region (DSIR). Prime Minister Narendra Modi laid the foundation stone for India’s first semiconductor fab virtually. Also present for the ceremony were Natarajan Chandrasekaran, Chairman of the Board of Tata Sons, Ashwini Vaishnaw, Minister of the Ministry of Electronics & IT and Shri Bhupendra Patel, Chief Minister of Gujarat. Rajeev Chandrasekhar, Minister of State, Ministry of Electronics and IT also joined the ceremony virtually.

This development comes just fourteen days after the government approved Tata’s proposal for a Rs 91,000 crore semiconductor fabrication plant along with its Rs 27,000 crore Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam.

Tata Sons Chairman Natarajan Chandrasekaran said, “It is very important for India to become a semiconductor nation. I am very glad that Tata group has been able to establish the first semiconductor FAB, also the first indigenous assembly unit in Assam. , where we see a lot of prosperity and lot of jobs and it will change the face of that part of the world with this specific investment.”

Tata Electronics has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to build India’s first AI-enabled state-of-the-art Fab. The new semiconductor Fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as automotive, computing and data storage, wireless communication and artificial intelligence. This Fab will have manufacturing capacity of up to 50,000 wafers per month and the first chip will come out from the facility before the end of 2026.

In addition to the Fab, Tata Electronics is also building a state-of-the-art, greenfield semiconductor assembly and test facility in Jagiroad, Assam with an investment outlay of Rs 27,000 crore. The facility will focus on on three key technologies – Wire Bond, Flip Chip, and a differentiated offering called Integrated Systems Packaging (ISP), with plans of expanding the roadmap to advanced packaging technologies in the future. These technologies are key to applications like automotive (especially electric vehicles), communications, network infrastructure and others. The proposed facility will serve the growing global demands across key market segments like AI, industrial, and consumer electronics.

“With regard to the capability, it is going to be a FAB which has the capability to produce multiple chips starting from 28 nanometer chips with plans for future advancements to 22 nm. We are accelerating the timeline typically of over 4 years. Our goal is to produce the chip in calendar year 2026, hopefully it will be in the later part of the year, but it will be 2026. So, we have got a very aggressive timeline, we have a partner who is very willing and we have assembled a team. So, we are looking forward to going live in 2026 and Assam will be done earlier. We may go for commercial production in Assam even in late 2025 or early 2026,” added Chandrasekaran.

Along with Tata’s semiconductor fab, the groundbreaking ceremony for the company’s OSAT and even CG Power’s OSAT facility with investment of about Rs 7,609 crores in Sanand was commenced.