Tata Group JV To Introduce First Semiconductor Chip by 2026: PSMC Chairman By CIOTechOutlook Team

Tata Group JV To Introduce First Semiconductor Chip by 2026: PSMC Chairman

CIOTechOutlook Team | Wednesday, 13 March 2024, 08:49 IST

The debut semiconductor chip from the joint endeavor between the Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Partnership (PSMC) will make a big appearance by 2026-end, PSMC Director Honest Huang added.

Huang said the points of interest of the alliance with the Tatas are as not entirely settled. "At the moment we have decided to work out the technology transfer. Later we can talk about investment," he said.

The semiconductor fabrication plant is being set up in Gujarat's Dholera and it is assessed that the Centre and state legislatures will together sponsor up to 70 percent of the venture's $11 billion expense. The joint endeavor with Tata Group is set to initiate with the creation of 28-nanometer chips, taking care of 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 stated achievement 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 pointed out 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 key part in the worldwide foundry scene, in 2023 PSMC declared a $5.3 billion chip fabricating plant in Japan. PMSC has had conversations for the plant with the Indian government starting around 2022, among different players considered were Reliance Enterprises, according to the report. Pondering the choice to join forces with the Tatas in India, Huang said there were deciding variables.