In an interview with The Economic Times on March 13, PSMC Chairman Frank Huang disclosed that the inaugural semiconductor chip from the joint venture between the Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) is slated to launch by the end of 2026.”
Huang, aged 74, revealed that while the specifics of the partnership with the Tatas are still being finalized, the initial focus is on technology transfer. He mentioned, ‘At the moment, we have decided to work out the technology transfer. Later we can talk about investment.’
The semiconductor fab, located in Gujarat’s Dholera, is expected to receive substantial subsidies from both the central and state governments, covering up to 70 percent of the project’s estimated $11 billion cost.
The collaboration between Tata Group and Powerchip Semiconductor Manufacturing Corporation (PSMC) is poised to launch its initial production with 28-nanometer chips, catering to India’s burgeoning supply chain requirements.”
Frank Huang, Chairman of PSMC, outlined the venture’s trajectory, highlighting plans to equip Tata with the semiconductor fab, mirroring operations in Taiwan. Huang asserted the suitability of 28nm chips for India’s supply chain needs, with potential future transitions to 22nm chips. He hailed the swift progress at the upcoming plant, heralding it as India’s pivotal stride in semiconductor manufacturing.
Huang underscored the importance of talent development, citing the imperative of training Indian engineers in Taiwan’s fabs. Reflecting on the decision to partner with Tata Group, Huang lauded their financial prowess, esteemed reputation, and government backing as decisive factors in clinching the collaboration.
PSMC’s extensive experience in the global foundry sector, exemplified by its $5.3 billion chip manufacturing plant in Japan, underpins its strategic vision for India’s semiconductor landscape. The partnership signifies a pivotal leap forward for India’s technological advancement and manufacturing prowess, with Tata Group at the helm of this transformative journey.
Prime Minister Narendra Modi recently shared on the social media platform X (formerly Twitter) about the imminent ground-breaking ceremonies for three semiconductor facilities across India. Modi hailed the event as a significant milestone in India’s quest to establish itself as a prominent semiconductor hub.”
Alongside the Dholera plant, two additional facilities are slated for development: a Tata Group fab in Assam and a CG Power factory in Gujarat. The Union Cabinet greenlit all three projects on February 29, underscoring the government’s commitment to bolstering India’s semiconductor manufacturing capabilities.
Modi’s announcement underscores the government’s unwavering support for fostering indigenous semiconductor production, heralding a new era of technological self-sufficiency and economic growth in the country.
Prime Minister Narendra Modi is set to virtually inaugurate the foundation stones for three semiconductor facilities today, collectively valued at over Rs. 1.25 lakh crore. This significant event underscores the government’s commitment to fostering indigenous semiconductor production and propelling India’s technological advancement.