Powerchip Semiconductor Manufacturing Corporation (PSMC) Chairman Frank Huang made a rare public appearance at the India Republic Day reception hosted by Manharsinh Yadav, Director General of the India Taipei Association, at the Grand Hyatt Hotel. His attendance underscored the strategic importance of PSMC's collaboration with India's Tata Group and the Indian government to establish a cutting-edge semiconductor fabrication facility in Gujarat, India.
The event, which celebrated both India's 75th Republic Day and the 30th anniversary of the India Taipei Association, highlighted the growing synergy between the two democracies. In his remarks, Yadav praised the deepening India-Taiwan partnership, emphasizing the importance of their supply chain collaboration in addressing global challenges. "Taiwan can rely on one constant, and that would be its partnership with India," Yadav said. "When chips are down, India shall always chip in with Taiwan, and we can rely on our supply chain partnership."
Strategic semiconductor venture
A key highlight of the growing bilateral relationship is Tata Electronics' semiconductor fabrication facility in Dholera, Gujarat, with PSMC's assistance in construction, technology transfer, and talent training. The project, announced in March 2024, is India's first commercial semiconductor fab in 30 years and represents a significant step in its quest to establish a domestic chipmaking ecosystem.
The US$11 billion project, backed by India's Semiconductor Mission (ISM), is heavily subsidized, with 50% of the funding coming from India's central government and an additional 20% from local governments. The 12-inch wafer fab will utilize 28nm processing technology and is expected to achieve a monthly capacity of 50,000 wafers by the end of 2026. The project will create over 20,000 skilled jobs, contributing to India's goal of becoming a global semiconductor hub.
Technology transfer and expertise sharing
PSMC plays a critical role by transferring its manufacturing technology and training Indian personnel, rather than directly investing in the facility. This approach aligns with PSMC's "Fab IP" strategy, which leverages its expertise to help partner countries develop their semiconductor capabilities.
Building momentum through partnership
PSMC's collaboration with Tata Electronics represents a new chapter in India-Taiwan relations. Following the launch of the Dholera project, PSMC has trained Tata engineering teams in Taiwan and deployed personnel to assist with facility design and construction in India. The first installment of payments from Tata Electronics was received in late 2024, marking a significant milestone in the partnership.
Huang has described the collaboration with Tata Electronics as a strategic fit, citing Tata's expertise in electronics manufacturing and its robust workforce of 50,000 employees. The partnership aims to address India's critical need for a 12-inch wafer fab, with Tata's executives—many of whom are returnees from major global semiconductor firms—leading the charge.
PSMC anticipates earning over NT$20 billion (approx. US$620 million) in revenue from consulting fees, technology transfers, and training services over the project's lifecycle. As the Dholera fab progresses, it stands as a testament to the shared vision of India and Taiwan in addressing global supply chain challenges and building a resilient semiconductor ecosystem.
Expanding bilateral cooperation
Yadav's speech also celebrated a range of joint achievements, including Taiwan's significant contributions to India's electronics manufacturing sector and the signing of a memorandum of understanding on labor cooperation. These efforts aim to deepen collaboration across industries such as traditional medicine, culture, education, and skills development.
The groundbreaking of the Dholera fab was one of several technological milestones in 2024, including India's historic space docking experiment and Taiwan's launch of its first lunar probe. Yadav highlighted India's rapid economic growth and its expanding electronics sector, which is projected to grow from US$150 billion to US$500 billion by 2030 under Prime Minister Narendra Modi's leadership.
Yadav also emphasized the importance of AI collaboration, citing India's strengths in software, design, and data. He framed the India-Taiwan partnership as pivotal in advancing technological innovation and ensuring global supply chain resilience.
In addition to Huang, the reception was attended by Taiwan's Deputy Minister of Foreign Affairs Chung-kwang Tien, General Secretary of the National Security Council, Joseph Wu, and Minister of Labor, Sun-han Hung.
Notable attendees included representatives from major Taiwanese firms with a steady presence in India including Foxconn(Bob Chen, General Manager, S Business Group, James Wu, Spokesperson, Chairman Office), Innolux, Wistron, Phison Electronics, AUO, Delta Electronics and Eric Wu, Chairman of Shinkong Synthetic Fibers.
Credit: ITA