Tata Electronics plans to establish two more semiconductor fabs in Dholera, Gujarat, as part of its long-term strategy to manufacture chips locally and meet global demand.
What Happened: Tata Electronics is closing in on buyers for the chips from the first fab, which are likely to include group companies such as Tata Motors, Tata Play and Tata Teleservices, as per a report from the Mint. The company is also planning to build a residential facility for about 4,000-5,000 people who will work at the first fab in Dholera.
The company is considering the timing and partnership for the second and third fabs, the report added. The first phase of the project, worth ₹91,000 crore, is in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).
The next phase is likely to commence in five to seven years, with the first fab expected to start production by 2026. The additional fabs are planned to be on the same scale as the first one, with the technology and nodes to be decided based on global demand and industry development.
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Currently, foundation work for the first fab is underway. The fab will produce chips for various sectors, including automotive, computing, data storage, wireless communication, and artificial intelligence (AI). At peak capacity, the first fab will have a manufacturing capacity of up to 50,000 wafers a month.
Earlier this month, the company signed a Memorandum of Understanding with Tokyo Electron to expedite the development of semiconductor equipment infrastructure for its projects in Gujarat and Assam.
Tata Electronics reported a ninefold surge in its sales for the year ended March 2024, primarily attributed to the company's acquisition of Wistron‘s iPhone assembly plant located near Bengaluru. The acquisition led to a total consolidated income of ₹3,802 crore in FY24, a massive leap from ₹401 crore reported for the year ended March 2023. The company’s strategic moves have positioned it as a key player in the global semiconductor supply chain.
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