Tata Electronics, PSMC complete tech transfer pact for Gujarat Fab unit

Tata Electronics, a Tata Sons subsidiary, has completed a definitive agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan for technology transfer, the Tata group said in a statement.

As per the agreement, PSMC will provide design and construction support to build a greenfield Fab in Dholera, Gujarat, license a broad portfolio of technologies, and offer engineering support to successfully transfer licensed technologies to the Gujarat Fab. With a total investment of up to Rs 91,000 crore, the Fab will create over 20,000 direct and indirect skilled jobs, the statement said.

“We are pleased to partner with PSMC, whose technology and expertise will significantly accelerate our roadmap to pioneer semiconductor manufacturing in India,” said N Chandrasekaran, chairman of Tata Sons. “This collaboration is a key milestone, and I am confident that our comprehensive technology partnership with PSMC will pave the way for innovation, drive growth, and strengthen the global semiconductor supply chain. It will position us to play a key role in the growing semiconductor market to serve global customers,” he said.

 

“We are excited to collaborate with Tata Electronics on this pioneering initiative to establish India’s first semiconductor Fab in Gujarat. It reflects our commitment to providing cutting-edge technology and expertise, helping Tata Electronics create a state-of-the-art facility that will catalyse India’s semiconductor landscape,” said Dr Frank Huang, chairman of Powerchip Group and CEO of PSMC. “This partnership represents a win-win situation, as it positions PSMC and the Taiwanese ecosystem to gain a significant first-mover advantage in the rapidly expanding Indian market while helping India achieve self-reliance in semiconductor manufacturing. I strongly believe that our partnership will be foundational to the India-Taiwan collaboration in semiconductors and will inspire more commercial and strategic tie-ups between the two sides,” he said.

This Fab will have a manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency. The new semiconductor Fab will manufacture chips for applications such as power management ICs, display drivers, microcontrollers (MCUs), and high-performance computing logic, addressing the growing demand in markets such as AI, automotive, computing and data storage, and wireless communication.

Tata Electronics has already engaged two esteemed design firms from Taiwan to create a top-tier Fab that adheres to global standards of quality, safety, and sustainability.