Tata Group In Talks With Two Taiwanese Firms For Chip Fabrication Unit In Gujarat: Report

The announcement of Tata Group's intention to establish a significant semiconductor fab in Dholera was made by Tata Sons Chairman N Chandrasekaran during an investment summit in Gujarat in January

Tata Group is on the brink of finalising a crucial decision for its upcoming semiconductor fabrication plant in Dholera, Gujarat. According to a report by the Economic Times (ET), the conglomerate is expected to select either Powerchip Semiconductor Manufacturing Corporation (PSMC) or United Microelectronics Corporation (UMC Group) for this venture.

The announcement of Tata Group's intention to establish a significant semiconductor fab in Dholera was made by Tata Sons Chairman N Chandrasekaran during an investment summit in Gujarat in January. He revealed plans for the construction of a massive semiconductor fab plant, projected to commence operations in 2024.

According to ET, initial projections suggest that the plant will have a capacity of producing 25,000 wafers per month, equating to around 700-1,000 semiconductor chips daily. The report indicates that the initial focus of production may center around mature nodes of 65 nanometers (nm), with plans to venture into the fabrication of 28-nm chips in the future.

UMC Group, the world's second-largest foundry, is among the contenders for this project. Meanwhile, PSMC, ranked as the world's seventh-largest pure-play foundry, also stands as a potential partner. Notably, PSMC made headlines last year with its announcement of a $5.3 billion semiconductor plant in Japan.

During the summit in January, Chandrasekaran reiterated Tata Group's commitment to the semiconductor fab project, stating that negotiations are in the final stages. Additionally, he unveiled plans for the construction of a 20-gigawatt lithium-ion storage battery factory in Sanand City, Gujarat, within the next two months.

Highlighting the conglomerate's recent endeavors in Sanand, Chandrasekaran said the significant commitment made to expand the group's presence in the region, particularly in electric vehicle (EV) technology. The expansion aims to address the rising demand for EVs, further solidifying Sanand as a hub for Tata Group's automotive innovations.