India Poised to Become a Major Semiconductor Producer with Tata-PSMC Partnership With a massive investment of INR 91,000 crore (around US$11 billion), the project is expected to create over 20,000 direct and indirect jobs

India is set to emerge as a high-tech hub for semiconductor production, significantly reducing its reliance on imports as demand for advanced electronics surges. This optimism was expressed by Frank Huang, Chairman of Powerchip Semiconductor Manufacturing Corporation (PSMC), a Taiwanese giant in the semiconductor industry. Huang was in India to sign a landmark agreement with the Tata Group, advancing the country's semiconductor capabilities, as per ET.

The agreement aligns with Prime Minister Narendra Modi's vision to make India semiconductor-ready. Huang further noted that India will become one of PSMC's major suppliers outside of Taiwan, highlighting the nation's growing potential in the global semiconductor market.

He emphasized that PSMC's partnership with the Tata Group is a perfect match. "Most semiconductor giants rarely license their technology, but India offers the right cost structure, capabilities, and government support. Tata is the ideal partner for us," he added via ET. PSMC had been exploring partnerships in India following a request from the Prime Minister's Office earlier this year. After extensive discussions with several companies, the Tata Group emerged as the best fit.

As part of the deal, PSMC will provide design and construction support for India's first AI-enabled greenfield Fab in Gujarat, marking a major milestone in the nation's semiconductor journey. This facility will focus on manufacturing chips for critical applications such as power management, display drivers and microcontrollers, serving industries like AI, automotive, computing and wireless communication.

Tata Sons Chairman, N Chandrasekaran, emphasized that the partnership would drive growth and innovation while bolstering the global semiconductor supply chain. Tata Electronics, having already trained 400 employees, will continue developing specialized skills needed for chip manufacturing by sending more batches of workers to Taiwan for advanced training.

With a massive investment of INR 91,000 crore (around US$11 billion), the project is expected to create over 20,000 direct and indirect jobs, while Tata's broader multi-fab vision for Dholera could generate over 100,000 skilled jobs. This collaboration also aims to establish a robust supply chain ecosystem to support India's burgeoning semiconductor industry.

Tata's Spree of Collaborations

Tata Electronics has also entered into a strategic alliance with Analog Devices Inc. (ADI), a semiconductor company, to explore semiconductor manufacturing opportunities in India. This collaboration involves several Tata Group subsidiaries, including Tata Electronics, Tata Motors and Tejas Networks, which signed a memorandum of understanding (MoU) with ADI. The partnership aims to enhance business cooperation, leverage ADI's products for Tata's electric vehicles and network infrastructure and boost semiconductor manufacturing in India. Read more