The strategic partnership seeks to expand India’s semiconductor sphere.  

On 26 September, Powerchip Semiconductor Manufacturing Corporation (PSMC) announced it had signed a definitive agreement with Tata Electronics in New Delhi. As per the agreement, the companies will collaborate on the construction of India’s first 12-inch wafer fabrication unit in Dholera, Gujarat. In addition, PSMC stated it would transfer mature process technologies and begin training local employees.  

The fabrication facility is expected to cost US$11Bn and will have a monthly production capacity of 50,000 wafers. While the exact level of processing technology for the chips remains uncertain, the facility is anticipated to contribute significantly to India’s growing technological demand.  

Prime Minister Modi has also pledged full government support for the Tata–PSMC wafer fabrication facility, encouraging PSMC to play a crucial role in the development of India’s semiconductor industry. Furthermore, Prime Minister Modi reassured Taiwanese businesses looking to invest in the country that they will receive support.  

India’s growing technological demand for semiconductor chips will encourage manufacturers to enter the country to establish reliable value chains. Although India is not in the spotlight when considering high-end chips, particularly TSMC’s 3nm processing technology, its push towards self-reliance will play a crucial role in the evolving semiconductor market.