Tata Electronics Ties-up With PSMC For India’s First AI-Enabled Semiconductor Fab

New Delhi, Sep 26 (KNN) Tata Electronics has announced the completion of a Definitive Agreement with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) for the development of India’s inaugural AI-enabled semiconductor fabrication facility. The greenfield project is set to be established in Gujarat.

Under the terms of the agreement, PSMC will provide comprehensive support for the design and construction of the facility. 

The Taiwanese firm will also licence a wide range of technologies and offer engineering assistance to ensure the successful transfer of these technologies to the Gujarat fab.

The planned facility is expected to have a production capacity of up to 50,000 wafers per month. 

It will incorporate next-generation factory automation capabilities, leveraging data analytics and machine learning to optimise operational efficiency.

According to Tata Electronics, the fab will manufacture chips for various applications, including power management integrated circuits, display drivers, microcontrollers, and high-performance computing logic. 

These components are intended to address the growing demand in sectors such as artificial intelligence, automotive, computing and data storage, and wireless communication.

In a statement, Tata Electronics emphasised the significance of this partnership, describing it as a ‘pioneering agreement’ that will introduce advanced semiconductor technologies, skills, and talent to India. 

The company also highlighted the potential for establishing a network of semiconductor manufacturing suppliers and ecosystem partners, which it views as foundational for developing an indigenous semiconductor ecosystem in the country.

The company further characterised this development as a ‘seminal moment’ in positioning India as a trusted partner within the global semiconductor supply chain. 

Tata Electronics expressed confidence that this initiative will accelerate India’s progress towards becoming a global semiconductor manufacturing hub.

This agreement marks a significant step in India’s efforts to establish a presence in the highly competitive and strategically important semiconductor industry.

(KNN Bureau)

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