Gandhinagar: Tata Electronics is constructing two additional fabrication plants, or fabs, in Dholera, Gujarat, as reported by Mint. This expansion aligns with the company’s strategy to develop a domestic chip manufacturing ecosystem to meet growing international demand and establish a strong foothold in the global semiconductor industry.

The construction of the first fab is currently in progress, with foundation work ongoing at the Dholera Special Investment Region, where Tata Electronics commenced operations in March of this year. This plant will focus on producing chips for power management circuits, display drivers, microcontrollers, and high-performance computing logic. These chips will be essential in various sectors, including automotive, data storage, wireless communication, and artificial intelligence (AI). At full capacity, the first fab is projected to manufacture up to 50,000 wafers per month.

The initial phase of the project, estimated to cost Rs 91,000 crore, is being developed in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). Production at the first fab is set to begin by 2026.

The second and third fabs are anticipated to be of a similar scale to the first, with construction expected to start within the next five to seven years. However, it remains uncertain whether Tata Electronics will partner with PSMC for these additional projects. The report noted that partnerships, along with the technology and infrastructure specifications for the second and third fabs, will depend on the state of the global semiconductor market and its demands at that time. DeshGujarat