Tata Electronics Inks MoU With Synopsys For Its Fab Plant In Gujarat’s Dholera

Tata Electronics, which is building India’s first semiconductor fabrication plant in Gujarat’s Dholera, has signed a Memorandum of Understanding (MoU) with US-based Synopsys to accelerate production at the fabrication unit.

The US-based giant provides electronic design automation, silicon IP and system verification and validation, among other services to semiconductor players.

The collaboration will help Tata Electronics in developing a foundry design platform to accelerate chip development at its AI-enabled semiconductor fab plant at Gujarat’s Dholera. It will also enable the establishment of factory automation, data analytics, TCAD (Technology Computer Aided Design) flow set-up, process design kits, IP development, among others. 

“We view Synopsys as a key partner and accelerator in our journey by virtue of the expertise they bring in semiconductor design and services,” Tata Electronics’ CEO and managing director Randhir Thakur said. 

In February, the Union Cabinet approved the establishment of the Tata Group’s semiconductor fab in Dholera in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC). 

The Tata Group has earmarked an investment of INR 91,000 Cr for the factory. It is looking to manufacture 50,000 wafers per month at the unit. The chips produced at the factory are expected to power entities in eight sectors, including high power compute, EV, telecomm, defence, consumer electronics, automobile, power electronics. 

As of now, Tata Electronics has started exporting semiconductor chips packaged at a pilot line at its Bengaluru R&D centre to partners in Japan, the US, and European countries. It is also nearing completion of the design process for semiconductor chips in various sizes, including 28nm, 40nm, 55nm, and 65nm.

“With this intended collaboration with Synopsys, Tata Electronics solidifies a critical pillar for a holistic approach to achieve its targets to be the first to bring semiconductor manufacturing to India,” the company said in a statement. 

Besides the Dholera plant, the company is also building a fab plant at Assam’s Jagiroad with an investment of INR 27,000 Cr. 

Behind the Tata Group’s decision to enter the semiconductor space is a market opportunity pegged north of $150 Bn. According to Inc42’s report, “The Rise Of India’s Semiconductor Startups Report 2024”, the country’s semiconductor market will witness an impressive CAGR of 24% during 2023-2030. 

Eyeing a piece of the semiconductor pie, SaaS giant Zoho is also looking to set up a semiconductor manufacturing plant in Tamil Nadu with an investment of around $700 Mn. Besides, US-headquartered Micron Technology is also building an INR 22,000 Cr semiconductor testing and packaging plant in Gujarat’s Sanand.

The companies’ semiconductor push has been fuelled by the multiple initiatives taken by the Centre, including the INR 76,000 Cr allocation for the Semicon India programme to develop the semiconductor and display manufacturing ecosystem in the country.