PSMC 'working' to bring semiconductor fab construction companies to India

Powerchip Semiconductor Manufacturing Corporation (PSMC) is “actively working” to bring semiconductor fab construction companies to India from Taiwan to build India’s semiconductor ecosystem, the company’s president Martin Chu said.

 

Speaking during the inaugural session of the four-day India Electronics and Semiconductor Association (IESA) Vision Summit 2025 in Gandhinagar, Chu said that India had created a “welcoming environment” for international companies such as PSMC, thereby fostering an ecosystem which would be conducive to innovation and investment.

 

PSCM, which has partnered with Tata Group to build the country’s first semiconductor chip manufacturing facility at Dholera in Gujarat, is collaborating with the latter on multiple fronts, Chu said.

 

“We are proud to partner with Tata Electronics to build India’s first commercial 12-inch wafer fab in Dholera. We have already begun collaborating on multiple fronts, from fab construction and technology transfer, to talent development and ecosystem building,” he said.

 

The Tata Group-PSMC joint venture is building the chip manufacturing facility at Dholera in Gujarat for an investment of roughly $11 billion. It is the only chip manufacturing facility in India so far to have been approved to receive Central and state government sops and incentives under the India Semiconductor Mission.

 

Apart from this chip manufacturing facility, the government has also approved four chip packing, assembly and testing units, of which three are located in Gujarat, while one is located in Guwahati.

 

Chu said that his company was also working to encourage more international players in the semiconductor ecosystem to come work in India and support the development of local raw material and finished goods suppliers.

 

Earlier on Wednesday, Tata Electronics and PSMC signed a memorandum of understanding with Taiwanese fabless chip manufacturer Himax. As a part of the MoU, Tata Electronics will make display chips for Himax from its Dholera facility, which is currently under construction.

 

The three entities together will work on end-to-end production of display semiconductor solutions such as chip design to manufacturing and packaging, as well as electronics manufacturing services (EMS) for their customers.