Narendra Modi’s vision is to make India semiconductor ready: Frank Huang chairman PSMC

“India has the promise to be a hi-tech producer of semiconductors and reduce the country’s dependency on imports on the back of growing demand for more electronics and hi tech products” said Frank Huang, chairman of the Taiwanese giant Powerchip Semiconductor Manufacturing Corporation (PSMC).

Huang was in India to sign the definitive agreement with the Tata group. “The agreement will work towards fulfilling Indian Prime Minister , Narendra Modi’s vision to make India semiconductor ready” he said. PSMC has its largest semiconductor capacities in Taiwan and outside of Taiwan, India will be one of our major suppliers, he said.

Huang said PSMC finds the partnership with Tatas a perfect match. ” Most semiconductor giants rarely license their technology.In terms of the cost structure, capabilities, government support offered, India and Tatas are the perfect fit for us, he said

PSMC had been hunting for a suitable company in India after the PMO asked the Taiwanese company to shortlist a partner in February. “We had several rounds of discussions with many potential companies. But we found an ideal partner in Tatas,” Huang said.

PSMC will provide design and construction support to build India’s first AI-enabled state-of-the-art greenfield Fab in Gujarat, license a broad portfolio of technologies and provide engineering support to successfully transfer licensed technologies to the Gujarat Fab.

“Semiconductors are fundamental for the future and we need strong capability,” said N Chandrasekaran, chairman of Tata Sons, emphasising the prime minister’s decisiveness and commitment which played a significant role to stitch this tie-up.This comprehensive technology partnership with PSMC will pave the way for innovation, drive growth, and strengthen the global semiconductor supply chain, Chandrasekaran said.Highly skill intensive, Tata Electronics has already trained 400 employees, with more batches set to travel to Taiwan as very specialised skills are required for the manufacture of chips.

With a total investment of up to INR 91,000 crores (~US$11bn), the Fab will create over 20,000 direct and indirect skilled jobs. Tata Group’s multi-fab vision for Dholera is projected to create over 100,000 skilled jobs.

The new semiconductor Fab will manufacture chips for applications such as power management IC , display drivers and microcontrollers (MCU) addressing the growing demand in markets such as AI, automotive, computing and data storage, and wireless communication.

Tata Electronics has already roped in several potential buyers for the chips produced at the Dholera Fab. Tata group companies such as Tata Motors and Tata Teleservices also consume integrated circuits. The group is also working on establishing a robust supply chain ecosystem by collaborating with suppliers and partners to build local ancillary units around the manufacturing locations, officials said.

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