Multi-Billion Deal with Taiwan; to develop Semi-Conductors by 2026
The first semiconductor chip from the collaboration between India’s Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) is set to launch by the end of 2026, according to PSMC Chairman Frank Huang in an interview with The Economic Times.
In discussions held on March 13, Huang, aged 74, mentioned that the specifics of the partnership with Tata are still being finalized. “Currently, we are focusing on technology transfer, with investment discussions to follow,” he stated.
The semiconductor fabrication plant is being established in Gujarat’s Dholera, with an estimated project cost of $11 billion, where both the central and state governments are expected to subsidize up to 70 percent of the expenses.
The joint venture aims to kickstart production with 28-nanometer chips to meet India’s supply chain demands. Huang outlined plans to provide Tata with the fab, similar to operations in Taiwan. He believes starting with 28nm chips is adequate for the Indian market, with the potential to progress to higher-end chips in the future.
Describing progress on the plant as “rapid,” Huang expressed optimism about India’s manufacturing and chip industry growth. He highlighted talent development as a key aspect, emphasizing the need to train Indian engineers in Taiwan for large-scale projects.
As a significant player in the global foundry landscape, PSMC announced a $5.3 billion chip manufacturing plant in Japan in 2023. Discussions with the Indian government for the Dholera plant began in 2022, with various entities considered before selecting Tata Group as the partner.
Prime Minister Narendra Modi announced on social media plans for ground-breaking ceremonies for three semiconductor facilities in India, including the Dholera plant, a Tata Group fab in Assam, and a CG Power factory in Gujarat. These projects, approved by the Union Cabinet, symbolize India’s strides toward becoming a semiconductor hub.
PM Modi will virtually lay the foundation stones for these semiconductor facilities, collectively worth over Rs. 1.25 lakh crore, today.
[Image Source: Eletimes]
