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Tata Group is setting its sights on commencing commercial production from India’s inaugural semiconductor fabrication unit by 2026, marking an ambitious endeavor for the nation’s long-awaited pursuit of self-reliance in chip manufacturing, spanning various technological applications from smartphones to defense systems.
Timeline and Scope of Tata Electronics Semiconductor Plant
Chandrasekaran, Chairman of Tata Sons, unveiled plans for Tata Electronics Pvt. Ltd’s semiconductor plant in Assam, aiming to kickstart production with semiconductor chips beginning at 28 nanometres. The plant is projected to initiate production by late 2025 or early 2026, catering to diverse sectors encompassing automotive, power, electronics, consumer goods, and medical equipment.
Strategic Partnerships and Collaborations
The semiconductor fabrication landscape in India is further bolstered by Tata’s collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) for another plant in Dholera, Gujarat under Tata-PSMC. Chandrasekaran highlighted the active involvement of PSMC and the assembled team, expressing optimism about achieving operational status by 2026.
Scale and Impact of Semiconductor Projects
Tata’s semiconductor initiatives are part of a broader spectrum of projects, including an outsourced semiconductor assembly and test facility by CG Power and Industrial Solutions Ltd in partnership with Japan’s Renesas Electronics Corp. India has also greenlit a $11.5 billion semiconductor project by Israel’s Tower Semiconductor, reflecting a total investment of approximately Rs.1.25 trillion.
Job Creation and Technological Advancements
Chandrasekaran underscored the significant employment potential, anticipating the creation of over 50,000 jobs through Tata’s semiconductor ventures, with an additional 25,000 jobs earmarked for the Assam unit. The Assam facility is poised to manufacture multiple chips, starting from 28 nanometres with plans for future advancements to 22 nm.
Addressing Semiconductor Chip Shortages and National Dependency
The semiconductor chip shortages exacerbated during the global pandemic underscored India’s reliance on international supply chains, underscoring the critical need for a domestic semiconductor industry. Chandrasekaran emphasized the pivotal role of a homegrown semiconductor ecosystem in fortifying various industries, positioning India as a formidable player in the semiconductor domain.
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“It is very important for India to become a semiconductor nation,” Chandrasekaran affirmed, highlighting the transformative potential of indigenous semiconductor production in shaping India’s technological landscape and fostering self-reliance.
