Tata Electronics to make up display semiconductor chips in Gujarat

Tata Electronics will set up a display chip manufacturing unit in Gujarat in partnership with Taiwan-based PSMC and Himax Technologies, a top official of the company said on Wednesday.

Speaking at IESA Vision Summit, Tata Electronics CEO Randhir Thakur announced signing of an agreement with the Gujarat government for the plant.

"Today, I am delighted to announce the signing of an MoU between Tata Electronics, PSMC and Himax to revolutionise India's display product and technology ecosystem. With PSMC's proven technology, Tata Electronics will manufacture display chips for Himax in Dholera, Gujarat," Thakur said.

Display chips are widely used in products like television, mobile phone screen, camera image sensors, LEDs, OLEDs etc.

Vedanta Group had also proposed to set up a display fab in Gujarat but the project has not received government approval yet.

With its foray in display manufacturing, Tata Electronics will have presence in all top three semiconductor manufacturing segments.

Under the project, Tata Electronics, Himax, and PSMC aim to leverage their respective strengths to deliver comprehensive, end-to-end display semiconductor solutions for their mutual customers, from chip design to chip manufacturing and packaging, as well as electronics manufacturing services (EMS) to both the Indian and global markets.

"Through this collaboration, we aim to bring Himax's industry-leading expertise in display semiconductors and WiseEye ultralow power AI sensing to support India's Made in India initiative while enhancing global supply chain resilience. This partnership underscores our commitment to delivering cutting-edge display solutions that cater to the evolving needs of both Indian and international markets," Jordan Wu, Co-Founder and CEO of Himax Technologies said.

Tata Electronics is already in process to set up a semiconductor fabrication plant in Gujarat with an investment of around Rs 91,000 crore with PSMC as its technology partner.

Powerchip Semiconductor Manufacturing Corporation (PSMC) is the world's seventh-largest pure-play foundry, with four 12-inch and two 8-inch fabs in Taiwan, capable of producing over 2.1 million 12-inch equivalent wafers annually. Tata is also setting up a chip assembly plant in Assam with an investment of Rs 27,000 crore.