Tata, PSMC sign pact for Rs 91,000-cr Dholera chip plant; meet PM Modi to discuss semiconductor manufacturing

Prime Minister Narendra Modi met the leadership team of Tata Sons and PSMC to discuss semiconductor manufacturing projects in the country. This comes as Tata Electronics concluded an agreement with the Taiwanese powerchip company for technology support to the tech major’s Dholera wafer fab. 

“Had a great meeting with the leadership team of Tata Sons and PSMC. They shared updates on their Semiconductor manufacturing projects. PSMC expressed enthusiasm to further expand its footprint in India,” said PM Modi on social media. 

As per the agreement, PSMC will provide design and construction support to build India’s first AI-enabled greenfield fab in Gujarat, licence a broad portfolio of technologies and provide engineering support to the fab unit. 

Tata Sons Chairman N Chandrasekaran said in a statement that PSMC’s technology and expertise will significantly accelerate Tata Electronics’ roadmap to pioneer semiconductor manufacturing in India. “It will position us to play a key role in the growing semiconductor market to serve global customers," he said. 

Tatas are setting up a chip manufacturing unit in Dholera for an investment of Rs 91,000 crore. The multi-fab manufacturer is projected to create over 1,00,000 skilled jobs. 

The Dholera fab will have a manufacturing capacity of up to 50,000 wafers per month. 

PSMC CEO Frank Huang said, “This partnership represents a win-win situation, as it positions PSMC and the Taiwanese ecosystem to gain a significant first-mover advantage in the rapidly expanding Indian market while helping India achieve self-reliance in semiconductor manufacturing.”