Tata Electronics Partners with PSMC and Himax to Boost India’s Semiconductor Ecosystem

6 Mar 2025 , 09:29 PM

Tata Electronics has entered into a strategic partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies to strengthen India’s semiconductor ecosystem. The collaboration aims to revolutionize India’s display semiconductor industry and advance ultralow-power AI sensing technologies.

Tata Electronics CEO Randhir Thakur announced the signing of a tripartite agreement with the Gujarat government at the IESA Vision Summit. The partnership will facilitate the manufacturing of display chips for Himax at Tata Electronics’ upcoming facility in Dholera, Gujarat, utilizing PSMC’s proven semiconductor technology.

The alliance will focus on expanding the market reach of all three companies by leveraging their combined expertise to cater to both Indian and global markets. The agreement aligns with the Indian government’s “Made in India” initiative, promoting domestic semiconductor production and reducing reliance on imports.

Tata Electronics, Himax, and PSMC will collaborate to deliver end-to-end semiconductor solutions, covering:

• Chip design for cutting-edge display and AI sensing products.
• Manufacturing using advanced semiconductor fabrication techniques.
• Packaging and electronics manufacturing services (EMS) to offer system-level solutions to customers.

Randhir Thakur emphasized that the partnership will drive innovation, focusing on developing next-generation semiconductor technologies to meet growing industry demands.

Jordan Wu, Co-founder and CEO of Himax Technologies, highlighted that the partnership presents a significant opportunity to fuel growth in India’s display semiconductor sector.

Martin Chu, President of PSMC, stated that the collaboration will help the companies expand their global footprint and capture a larger share of the display and AI sensing markets.

Tata Electronics is already in the process of setting up a semiconductor fabrication plant in Gujarat with an investment of approximately ₹91,000 crore, in collaboration with PSMC as its technology partner.

PSMC is the world’s seventh-largest pure-play semiconductor foundry, operating four 12-inch and two 8-inch fabs in Taiwan, with a production capacity of over 2.1 million 12-inch equivalent wafers annually.

In addition to its Gujarat project, Tata Electronics is establishing a chip assembly and testing facility in Assam, with an investment of around ₹27,000 crore to enhance India’s semiconductor manufacturing capabilities.