Make in India: Tata Electronics begin limited export of semiconductor chips

Tata Electronics is also in the advanced stages of successfully finalising the tape-out process for semiconductor chips ranging from 28 to 65 nanometers, along with some higher nodes

Tata Electronics Ltd has initiated the export of a limited quantity of semiconductor chips packaged at a pilot line situated in its research and development centre in Bengaluru, according to a report in The Economic Times (ET).

The packaged chips are being sent to Tata Electronics' partners in Japan, the US, and Europe, the report claimed, citing sources. Simultaneously, the company is preparing to establish a new chip packaging unit in Morigaon, Assam, and a $10 billion chip foundry in Dholera, Gujarat.

Tata Electronics is also in advanced stages of finalising the tape-out process for semiconductor chips ranging from 28 to 65 nanometres, along with some higher nodes, the report added. Notably, the chips currently being exported are versatile and not tailored for specific applications.

The chip foundry in Dholera, a collaborative effort between Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), is projected to have a monthly capacity of up to 50,000 wafer starts. It is anticipated to manufacture chips in leading nodes like 28 nanometres and 40 nanometres, as well as legacy nodes such as 55 nanometres, 90 nanometres, and 110 nanometres.

Tata Electronics' partnership with Tesla

Recently, reports surfaced regarding Tesla's strategic partnership with Tata Electronics for sourcing semiconductor chips globally. This agreement highlighted Tata Electronics' emergence as a reliable supplier for major global clients seeking to establish a significant portion of their semiconductor value chain in India.

Additionally, Tesla's interest in establishing a local presence in India has been hinted at in recent reports. Allegedly, the American electric vehicle manufacturer is exploring potential joint ventures with Reliance Industries to establish manufacturing facilities within the country.

Tata's Semiconductor chip expansion plans

During a groundbreaking ceremony for Tata Electronics' Rs 91,000 crore chip manufacturing plant and Rs 27,000 crore chip assembly facility in Assam in March this year, Tata Sons Chairman N Chandrasekaran disclosed plans for gradual sector-wise chip deployment, which is expected to generate around 72,000 jobs over time. He emphasised that project expansions would occur only after achieving initial milestones.

Earlier in February, reports indicated that the Tata Group was in discussions with Taiwanese companies, including UMC Group and Powerchip Semiconductor Manufacturing Corporation, for partnerships regarding its semiconductor plant in Dholera.