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Business News/ Companies / News/  Tata Group JV to roll out first semiconductor chip by 2026, says PSMC Chairman Frank Huang
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Tata Group JV to roll out first semiconductor chip by 2026, says PSMC Chairman Frank Huang

PSMC Chairman Frank Huang said specifics of the partnership with the Tatas are still being determined and talks of investment will come after the technology transfer is worked out

Semiconductor chips are seen on a circuit board of a computer in this illustration picture. (Reuters)Premium
Semiconductor chips are seen on a circuit board of a computer in this illustration picture. (Reuters)

The inaugural semiconductor chip from the joint venture between the Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) will debut by 2026-end, PSMC Chairman Frank Huang told The Economic Times in an interview.

Speaking to the paper on March 13, 74-year-old Huang said the specifics of the partnership with the Tatas are still being determined. "At the moment we have decided to work out the technology transfer. Later we can talk about investment," he said.

The semiconductor fab is being set up in Gujarat's Dholera and it is estimated that the Centre and state governments will together subsidise up to 70 percent of the project's $11 billion cost.

Commencing with 28nm Chips

The joint venture with Tata Group is set to commence with the production of 28-nanometer chips, catering to India's supply chain needs.

"We will provide Tata with the fab, which is what we do in Taiwan. At this moment, from our perspective, I think 28nm should be fine and then we can start to move down in the future till 22nm. I think for the Indian supply chain, this is sufficient. We don’t need that much of a high-end chip. Several years after, we will go to higher-end chips," Huang said.

He also described progress at the upcoming plant as "very fast". Adding, "This is the beginning of India’s serious acceleration in the manufacturing and chip space. This fab will take India one step ahead. Semiconductors are an expensive business and once you have one fab, you can get two and three. That's the future that India can look to."

He also emphasised talent acquisition, stating, "One of the important jobs is training Indian engineers in Taiwan on fabs. For this type of large-scale project, it will require time. Once the ground-breaking is done, we can start."

As a major player in the global foundry landscape, in 2023 PSMC announced a $5.3 billion chip manufacturing plant in Japan.

PMSC has held discussions for the plant with the Indian government since 2022, among other players considered were Reliance Industries, as per the report. Reflecting on the decision to partner with the Tatas in India, Huang said there were determining factors.

"Several big companies wanted to get this support for a technology transfer. After a review, we decided Tata is the best choice because of its financing, (it being) a prestige company and the size of the company. With the kind of money they have and the government subsidy, they should be able to do the job. They are best qualified for this," he added.

Ground-Breaking for Semiconductor Facilities Soon

Prime Minister Narendra Modi took to the social media platform X (formerly Twitter) to post about ground-breaking ceremonies for the three semiconductor facilities in India. He also the event as pivotal in India's journey to becoming a semiconductor hub.

The other two facilities besides the Dholera plant include a Tata Group fab in Assam and a CG Power factory in Gujarat. All three were approved by the Union Cabinet on February 29.

PM Modi will lay the foundation stones for three semiconductor facilities worth over Rs. 1.25 lakh crore today, virtually.

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Published: 13 Mar 2024, 11:09 AM IST
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