As Tata Electronics constructs India's first commercial wafer fab in three decades, it plans to leverage this experience to develop additional fabs in the medium to long term. The company will likely partner with Tata Group companies to produce the first made-in-India chips by 2026.
Mint, citing unnamed sources, reported that Tata Electronics plans to establish two additional semiconductor fabs in Dholera, Gujarat, as part of its long-term strategy to produce chips locally and meet global demand. The next phase is expected to start in five to seven years, with the first fab set to begin production by 2026. The new fabs may have a similar scale to the first one, with technology and process nodes undetermined.
The upcoming first fab will focus on manufacturing chips for PMICs, DDIs, MCUs, and HPC chips. Once fully operational, the fab is expected to achieve a peak manufacturing capacity of up to 50,000 wafers per month.
Tata Electronics is nearing agreements with buyers for chips from its first fab, likely including group companies such as Tata Motors, Tata Play, and Tata Teleservices.
In a separate report, Mint disclosed that Tata Consultancy Services (TCS) is collaborating with Tata Electronics Ltd to develop the first made-in-India chips by 2026. Sreenivasa Chakravarti, vice-president and global head of TCS's digital engineering business, detailed that while Tata Electronics concentrates on-chip fabrication, TCS is applying its expertise across various segments of the semiconductor value chain to support the initiative.
Additionally, the company is constructing a residential facility for 4,000-5,000 employees at the Dholera site. Tata is actively negotiating with suppliers and partners to develop local ancillaries, aiming to establish a comprehensive supply-chain ecosystem for semiconductor manufacturing.
Mint reported that regarding Tata's ATMP facility in Assam, which began construction in August, is currently conducting environmental impact assessments following a preliminary topographical survey, water analysis, flood risk evaluation, and environmental monitoring. The 600-acre campus is expected to be ready for high-volume manufacturing by the second half of 2025, with a daily capacity of 48 million chips focusing on wire bond, flip chip, and Integrated Systems Packaging (ISP) technologies, with plans to expand into advanced packaging technologies.
India's central government has only approved one wafer fab, which was proposed by Tata, for now. In early September, Tower Semiconductor and Adani Group joined hands to establish a wafer fab in India's western state of Maharashtra with an investment of INR839.47 billion (US$10 billion), slightly less than Tata Electronics fab, which costs INR910 billion to build.
Despite being one of the first to apply for semiconductor incentives in early 2022, Foxconn has yet to make significant progress on its wafer fab project in India. Recently, the Economic Times reported, citing unnamed sources, that Foxconn and HCL have been allocated approximately 30 acres of land in Uttar Pradesh for the establishment of an ATMP/OSAT facility.
India recently wrapped up SEMICON India 2024 on September 13. The event saw participation from US and Japan-based semiconductor equipment manufacturers and EDA tool providers, including Synopsys and Siemens. This turnout highlights the expanding semiconductor ecosystem in India, underscoring the country's increasing ambitions in chipmaking.
