Tata's Dholera semiconductor plant may roll out India's first indigenous chip by 2026: Report

Beyond producing high-performance compute chips, the Dholera facility is slated to manufacture power management chips catering to diverse sectors

The anticipation surrounding India's foray into semiconductor manufacturing gains momentum as the Tata Group's plant in Dholera is poised to unveil the nation's first indigenous semiconductor chip by 2026.

The colossal Rs 91,000-crore semiconductor fabrication unit in Dholera, a joint venture between Tata Electronics and PSMC, boasts a manufacturing capacity of up to 50,000 wafers per month.

Frank Huang, chairman of Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), revealed in an interview with the Economic Times that the Dholera facility will begin operations with 28 nanometer chips, with plans for future advancements to 22 nm.

Also read: Gujarat's chip drive: Tata Group, CG Power get 188 acres for semiconductor plants, says report

Beyond producing high-performance compute chips, the facility is slated to manufacture power management chips catering to diverse sectors such as electric vehicles (EV), telecom, defense, automotive, consumer electronics, displays, and power electronics.

Power management chips, vital for high voltage and high current applications, signify a pivotal focus area for the project.

Renowned for its prowess in logic and memory foundry segments, PSMC operates six semiconductor foundries in Taiwan, bringing a wealth of expertise to the Indian semiconductor landscape.

The Indian government, eyeing significant strides in semiconductor manufacturing, has approved proposals for three semiconductor plants, including two in Gujarat and one in Assam, with an estimated total investment of Rs 1.26 lakh crore.

Union IT Minister  Ashwini Vaishnaw expressed intentions to expedite the typically lengthy semiconductor fab timeline, aiming for a compressed production cycle.

The Tata Semiconductor Assembly and Test Pvt Ltd’s forthcoming chip assembly and testing unit in Assam, set to be established with an investment of Rs 27,000 crore, underscores the broadening scope of India's semiconductor ambitions. Additionally, CG Power and Japan’s Renesas are slated to establish a semiconductor plant in Gujarat’s Sanand, with an estimated cost of Rs 7,600 crore, aiming to churn out 15 million chips per day.

These endeavors supplement the ongoing establishment of a Rs 22,516-crore chip assembly plant by US-based memory chip manufacturer, Micron, reinforcing India's trajectory in the global semiconductor arena.