Tata-PSMC semiconductor plant in Dholera aims to roll out its first chip by late 2026

The semiconductor manufacturing plant jointly established by the Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) in Dholera, Gujarat, is anticipated to be ready for production as soon as 2026-end. This update comes directly from Frank Huang, the chairman of PSMC, in an exclusive conversation with The Economic Times.

Primary focus on tech transfer

Huang revealed that the specific details of the joint venture with Tata Group are still under discussion, with a primary focus on technology transfer initially before investment discussions commence. PSMC, renowned for its memory chips and foundry services, expressed satisfaction with the swift progress of its Indian partner, the Tata Group, towards the $11 billion project.

Support from Indian government

The establishment of the Dholera unit is poised to receive substantial support from both the central and state governments, potentially covering up to 70% of the project costs. This initiative aims to materialise India's longstanding ambition of possessing its first commercial semiconductor fab, marking a significant stride in the country's technological advancement.

Production of 28nm chips initially

The manufacturing process at the Dholera plant is expected to commence with the production of 28nm chips. Huang emphasized the significance of this endeavor, stating that it heralds India's serious foray into the manufacturing and chip space. He envisages a promising future for India in semiconductor manufacturing, foreseeing the establishment of multiple fabs in the country.

Focus on semiconductor self-sufficieancy

The Indian government's pursuit of semiconductor self-sufficiency dates back to 2022 when it initially engaged in discussions with PSMC. The decision to partner with the Tata Group was attributed to various factors, including financial capabilities, prestige, and company size.

PM Modi lays the foundation

The ceremony for the Dholera plant, alongside two other chip assembly units, took place simultaneously on Wednesday, symbolising a significant milestone in India's quest to become a prominent hub for semiconductor manufacturing. Prime Minister Narendra Modi laid the foundation for all three plants.