Tata Group in Talks with Taiwanese Firms for Gujarat Plant

19 Mar 2024 , 10:35 AM

According to a report in the Economic Times, the Tata Group is expected to select between United Microelectronics Corporation (UMC Group) and Powerchip Semiconductor Manufacturing Corporation (PSMC) for its projected chip fabrication plant in Dholera, Gujarat.

Tata Sons Chairman N Chandrasekaran declared during an investment event in Gujarat in January that the company would construct a huge semiconductor fabrication unit in Dholera and start production there in 2024.

The plant will initially be able to produce 700–1,000 semiconductor chips per day, or 25,000 wafers each month. According to the study, the plant might observe the first 65 nm (nanometre) of mature node manufacturing. Nonetheless, the team intends to eventually start producing 28-nm devices.

Moneycontrol was informed by industry analysts that PSMC-Tata Group would be feasible given that the Taiwanese chipmaker had plans to join the Indian market the previous year. The chipmaker’s chairman, Frank Huang, then disclosed that the company was in early discussions to assist in the construction of new chip plants in India with a number of Indian conglomerates.

The states where these units are established provide an additional 15-20% in incentives in the form of subsidised land, cheaper power, water, and other resources, while the national government pays 50% incentives on capital investment for successful applicants under the India Semiconductor Mission.

One of the two main proposals that the Tata Group submitted to the Indian government, the report states, has been finalised with regard to the site for the factory. Additionally, Tower Semiconductor of Israel suggested spending around $9 Billion in India.

The Assam government and the Tata Group are working together to build a semiconductor packaging plant valued at ₹25,000 Crore, Rajeev Chandrasekhar, the minister of state for electronics and IT, announced on February 15 at the Future Skills Summit in Guwahati.

In the past, Chandrasekhar said that the government had received 13 offers for chip assembly units and four proposals for semiconductor manufacturing plants.

A financial support package worth ₹76,000 Crore has been set aside by the Indian government to entice semiconductor production and packaging facilities.

US-based Micron Technologies, which has started establishing its ATMP facility in Sanand, Gujarat, has made the first investment under the plan. Micron has invested a total of $2.75 Billion, of which $800 Million is coming from its own resources.

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