Tatas' Gujarat semiconductor fab will create over 20K jobs

Tata Electronics' Rs 91,000 crore semiconductor fab in Dholera, Gujarat, in partnership with PSMC, will generate over 20,000 direct and indirect skilled jobs in the region and construction of the mega unit is expected to begin this year, according to a statement on Thursday.

The planned unit - India's first commercial fab, marks Tata Electronics' entry into the global semiconductor industry.

Tata Electronics said it is "proud to lead India's entry into global semiconductor fabrication".

In a significant move towards creating an indigenous 'Make in India, For the World' semiconductor ecosystem in India, the government on Thursday approved Tata Electronics' proposal to build a semiconductor fabrication facility in Dholera, Gujarat in partnership with PSMC.

"The fab construction will begin this year with a total investment of up to Rs 91,000 crore ($11 billion) and will generate over 20,000 direct and indirect skilled jobs in the region," Tatas said in a release.

Tata Electronics, which is a wholly-owned subsidiary of Tata Sons, has teamed up with Powerchip Semiconductor Manufacturing Corporation (PSMC) to build India's first AI-enabled state-of-the-art Fab.

The Fab will have manufacturing capacity of up to 50,000 wafers per month and will include next generation factory automation capabilities deploying data analytics and machine learning to achieve industry-best factory efficiency.

The new semiconductor fab will manufacture chips for applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic, addressing the growing demand in markets such as automotive, computing and data storage, wireless communication and artificial intelligence.

Tata Sons chairman, N Chandrasekaran had announced Tata Group's decision to build a semiconductor fab in Dholera during the 20th Vibrant Gujarat Summit last month.

Commenting on the planned semiconductor Fab, he said, “Tata Group has a tradition of pioneering many sectors in the country, and we are confident that our entry in semiconductor fabrication will add to this legacy."

By 2030, global semiconductor industry is expected to grow to $1 trillion and Indian semiconductor demand is expected to cross $110 billion.

India's entry into semiconductor manufacturing will significantly de-risk global supply chains and will make India a very important player in the global semiconductor industry, Tatas said.

"We are proud to lead India's entry into global semiconductor fabrication.

"This will also accelerate our progress towards providing high-technology employment opportunities for the youth of India," it said.

Randhir Thakur, CEO and MD, Tata Electronics, said the latest move marks the beginning of a new era for India.

"Our partnership with PSMC provides access to a broad technology portfolio in leading edge and mature nodes including 28nm, 40nm, 55nm, 90nm and 110nm and also collaboration for high volume manufacturing," he said.

Thakur exuded confidence that the upcoming fab will support our ambitions of “Make in India, For the World” and said "We will be able to serve our global customers' requirements for supply chain resilience and meet the growing domestic demand.."

Taiwan's leading pure-play foundry company with capabilities across logic and memory technologies, PSMC, will provide access to leading-edge and mature technologies.

Frank Hong, chairman, PSMC said: "Tata Group is one of the most established and well-respected names in India and globally...

"Semiconductor industry presents a large and growing opportunity, and India is uniquely placed to capture this opportunity."

"On one end India has a large and growing domestic demand and on the other end, global customers are looking at India for supply chain resilience.

"There could not have been a better time for India to make its entry into the semiconductor manufacturing industry.

"This partnership has the potential to redefine the contours of global semiconductor manufacturing and we are looking forward to collaboration with Tata Electronics," Hong added.

This new initiative from Tata Electronics will bring to India a portfolio of cutting-edge semiconductor technologies, advanced skill set and talent, and a network of semiconductor manufacturing suppliers and ecosystem partners, resulting in the foundational development of the indigenous semiconductor ecosystem in India, the group said.

"With this Fab, India for the first time will be able to address the growing chip demand of domestic and global customers across automotive, computing, communications, and artificial intelligence markets. Tata Group'smulti-fab vision for Dholera is projected to create over 100,000 skilled jobs and establish India as one of the key supply chain partners to the global semiconductor industry," it further said.

In a move being billed as a "giant leap" for India's semiconductor mission, the government on Thursday approved three semiconductor unit proposals, two by Tatas and one by CG Power-Renesas, entailing a cumulative investment of Rs 1.26 lakh crore.

India is wooing semiconductor players with a multi-billion dollar ($10 billion) incentive scheme, making a determined push to position itself as a powerhouse in global manufacturing.

Sophisticated chips are part of everyday life, used in mobile phones to refrigerators and cars to high-tech industries, and so fostering local industry with carefully crafted schemes and incentives will link India to an ever-growing, thriving global chip market.