Tata Electronics, a subsidiary of Tata Sons, has finalized a Definitive Agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan. According to the agreement, PSMC will provide design and construction support for India's first AI-enabled greenfield semiconductor Fab in Gujarat while licensing a broad technology portfolio and offering engineering support to transfer these licensed technologies to the Gujarat Fab.
The Fab will have a manufacturing capacity of up to 50,000 wafers per month, incorporating factory automation with data analytics and machine learning to achieve optimal efficiency. It will produce chips for power management ICs, display drivers, microcontrollers (MCU), and high-performance computing logic, catering to sectors such as AI, automotive, computing, data storage, and wireless communication.
This agreement will bring cutting-edge semiconductor technologies and advanced talent to India, fostering the development of a local semiconductor ecosystem. With an investment of INR 91,000 crores (~US$11bn), the project is set to create over 20,000 direct and indirect skilled jobs, and Tata Group's multi-fab vision for Dholera could generate more than 100,000 jobs in the future.
N Chandrasekaran, Chairman of Tata Sons, called the collaboration a key milestone that will drive innovation, support global semiconductor supply chains, and help India serve both domestic and global customers.
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