Tata Electronics Partners TEL For Chip Equipment Infrastructure

Tata Electronics has signed a memorandum of understanding (MoU) with Tokyo Electron Limited (TEL) for semiconductor equipment infrastructure. 

The Japanese semicon firm TEL will support Tata Electronics in accelerating the infrastructure at its ongoing semiconductor fab project in Gujarat’s Dholera and assembly and testing facility in Assam’s Jagiroad.

Through this partnership, Tata Electronics and TEL will also focus on workforce training, equipment support and R&D initiatives.

Tata Electronics is investing INR 91,000 Cr to build India’s first fab in Dholera and an additional INR 27,000 Cr in a greenfield facility in Jagiroad for semiconductor chip assembly and testing.

These facilities will produce semiconductor chips for automotive, mobile devices, AI, and other key segments globally. Tata Electronics’ partnership with TEL strengthens its ability to meet execution targets by growing key partnerships across the semiconductor ecosystem, including process and design technology and equipment suppliers, the company said in a statement.

It is looking to manufacture 50,000 wafers per month at the fab 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 and 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.

Randhir Thakur, managing director and CEO, Tata Electronics, said, “TEL has a history of working closely with its customers, and its expertise in the semiconductor equipment space will help build a dynamic ecosystem to support the timely execution of bringing up our fab and advanced packaging factories.”

Toshiki Kawai, president and CEO of Tokyo Electron Limited, said, “This strategic collaboration spans both front-end fabrication and back-end packaging technologies, highlighting our commitment to delivering exceptional support and value to Tata Electronics.  By leveraging our collective strengths, we aim to accelerate development and drive innovation across multiple technology nodes.”

TEL is a global semiconductor equipment provider that will introduce advanced products for the MAGIC market (Metaverse, Autonomous Mobility, Green Energy, IoT, and Communications) and plans to establish an engineering service in India to support global product development. The firm provides products and services to customers through a global network in the US, Europe, and Asia.

The development comes months after Tata Electronics signed an MoU with US-based Synopsys to accelerate production at the fabrication unit.

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.