Tata Electronics of India Begins Chip Exports

The semiconductor industry in India is set to receive a significant boost as Tata Group takes a key step towards establishing a high-volume wafer fab in Dholera, Gujurat, and a packaging factory in Morigaon, Assam. This move, which has received approval from Indian authorities, is part of Tata's ambitious plan to break into the semiconductor market. The company is expected to benefit from a substantial 70 percent subsidy support from the government, signaling a strong commitment to fostering domestic semiconductor manufacturing.

While the factories are projected to commence production by 2026, Tata is already leveraging its pilot capability to develop best practices for co-design, component handling, and customer development. According to sources, Tata Electronics has begun packaging chips at the facility, with some products already being shipped to customers overseas. The company is actively expanding its customer base and collaborating with multiple partners to enhance its offerings.

The specific types of chips being exported from the facility have not been disclosed, but they are described as generic standard products suitable for a variety of applications. These chips, which could include power transistors and small signal transistors, have reportedly been well-received by Tata's customers in Japan, the US, and Europe. Additionally, Tata is said to be on the verge of finalizing its own chip designs targeting advanced nodes such as 28nm and higher.

The Dholera fab, developed in partnership with Powerchip Semiconductor Manufacturing Corporation of Taiwan, represents a substantial investment of about 910 billion rupees (approximately US$11 billion). With a manufacturing capacity of up to 50,000 wafers per month, the fab is poised to produce a range of semiconductor products including power management ICs, display drivers, microcontrollers, and high-performance computing logic for various industries.

Meanwhile, Tata Electronics is also making significant strides with its OSAT facility in Assam, which is being established with an investment outlay of 270 billion rupees (around US$3.25 billion). This facility is expected to support wire-bond, flip-chip, and integrated systems packaging, catering to the growing demand for advanced packaging solutions in the semiconductor market. The combined efforts of Tata Group in Dholera and Assam are poised to strengthen India's position in the global semiconductor landscape.