TLDRs:
- Tata Electronics engages global vendors to accelerate India’s semiconductor ecosystem development.
- India invests $18 billion in chip projects to reduce reliance on imports.
- Tata’s Dholera fab and Assam test site aim to boost domestic chip manufacturing.
- Industry experts highlight talent, infrastructure, and policy as critical to India’s chip ambitions.
Tata Electronics, a subsidiary of the Tata Group, is actively engaging with international suppliers ASML and JT Corp to support its ambitious semiconductor projects in India.
ASML, a Dutch firm renowned for its photolithography machines, and JT Corp, a South Korean company specializing in semiconductor test systems, are being considered to equip Tata’s upcoming fabrication plant in Dholera and an outsourced assembly and testing site in Assam.
These discussions mark a significant step in India’s broader strategy to establish a self-reliant semiconductor ecosystem, with Tata Electronics positioning itself as a central player. Sources indicate that these vendor talks are part of a larger effort to secure advanced equipment critical for manufacturing high-performance chips.
India Bets $18 Billion on Chip Manufacturing
India has approved ten semiconductor projects across six states, totaling an investment of $18.2 billion. The country’s goal is to reduce dependence on imported chips, secure supply for strategic industries, and capture a larger share of the global electronics market, which has been shifting away from China.
The government’s semiconductor mission aims to create a complete domestic supply chain encompassing design, fabrication, testing, and packaging.
Despite the scale of investment, experts caution that India’s talent pool and infrastructure are still developing, making the path toward a fully functional chip ecosystem challenging.
Tata’s Dholera and Assam Facilities Take Shape
Tata Electronics’ Dholera fabrication facility represents one of India’s largest chip projects, with an estimated investment of $11 billion in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp.
The plant is expected to produce power management integrated circuits, microcontrollers, display drivers, and high-performance computing logic, which will serve industries like AI, automotive, computing, and data storage.
In parallel, the Assam site will focus on outsourced semiconductor assembly and testing (OSAT), offering a lower-capital-intensive alternative to fabrication while capturing higher margins. This initiative aligns with India’s broader strategy to encourage medium-sized companies to enter testing and packaging, fostering a domestic vendor ecosystem.
Long-Term Challenges and Opportunities
Industry analysts stress that India’s semiconductor ambitions will depend on more than capital investments.
“India needs a dynamic, long-term ecosystem,” said Stephen Ezell, vice president for global innovation policy at the Information Technology and Innovation Foundation.
Critical factors include talent availability, labor policies, trade regulations, infrastructure reliability, and access to ultra-high-purity chemicals essential for advanced semiconductor production.
While fabrication plants face strict requirements, the country has already taken steps to address key challenges. Financial support schemes for electronic component manufacturing are helping establish a domestic buyer-supplier base. Medium-sized Indian companies are also showing interest in testing and packaging units, signaling potential growth in the OSAT sector.
Looking ahead, the next three to four years will be pivotal for India’s semiconductor landscape. Success in establishing operational fabs, securing international partnerships, and nurturing a domestic ecosystem could position India as a significant player in the global chip industry, though achieving production of cutting-edge 2nm chips remains a distant target.
