Tata Seeks Taiwanese Collaboration For Guj Chip Plant

Salt-to-software conglomerate Tata Group could be looking for collaboration with one of the two major Taiwanese semiconductor manufacturers – Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group, for its proposed semiconductor fab unit in Gujarat’s Dholera.

The Indian conglomerate initially plans to manufacture mature nodes at 65 nm, followed by 48 nm and then 28 nm. These nodes will support applications such as graphic processor units (GPU), consumer electronics, and the Internet of Things, over the next few years, as per an ET report.

“The Tata Group has finalised the details of the land for the plant and is likely to break ground soon,” an official told ET.

The plant’s initial capacity is estimated at 25,000 wafers per month, potentially yielding 700-1,000 semiconductor chips daily at peak efficiency.

In January, Tata Sons Chairman N Chandrasekaran announced plans for a ‘huge semiconductor fab’ in Dholera during an investment summit in Gujarat. This facility is set to commence operations in 2024, marking the first major chipmaking plant established by an Indian conglomerate and realising a longstanding ambition of New Delhi.

A semiconductor plant requires a $5-10 Bn investment.

The Tata Group proposal, along with Israel’s Tower Semiconductor, is one of two strong proposals currently with the government. Tower Semiconductor’s proposal involves an investment of nearly $9 Bn in India.

Besides the chip fabrication unit, Tata Group may soon reveal plans for an outsourced semiconductor assembly testing (OSAT) unit in Jagiroad, Assam, with a total planned outlay of approximately INR 25,000 Cr. 

As per ET, Tata Group might seek a “knowledge partner” for the OSAT unit, as it does not necessitate very advanced and cutting-edge technology.

Meanwhile, in a bid to expand its iPhone manufacturing unit across India, Tata Group has been in advanced discussions with Taiwanese electronics major Pegatron to establish a joint venture for its second iPhone manufacturing facility in Tamil Nadu’s Hosur city. 

Tata Group is preparing to construct one of India’s largest iPhone assembly plants in Hosur, aligning with Apple Inc.’s strategy to expand its manufacturing footprint in the country. 

Tata currently operates a single iPhone assembly plant in Karnataka.

In November last year, the company completed the acquisition of Wistron’s manufacturing facility in the state, marking its foray into assembling Apple iPhones.