A new agreement between Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) and India’s Tata Electronics marks a significant milestone in India’s semiconductor industry. This partnership, signed in New Delhi, will establish India’s first 12-inch wafer fabrication facility in Dholera, Gujarat. The collaboration involves technology transfer and workforce training, positioning India to become a new global semiconductor hub.
The project has garnered strong support from Indian Prime Minister Narendra Modi, who met with PSMC chairman Frank Huang and pledged administrative assistance, a commitment to providing full support for the project and assisting Taiwanese companies in establishing operations in India. This high-level endorsement underscores the strategic importance of the initiative for India’s technological advancement and economic growth.
With an investment of $11 billion, the new fab is expected to have a monthly production capacity of 50,000 wafers and create over 20,000 high-tech jobs. The facility will focus on manufacturing various chip types, including power management chips, display driver chips, microcontrollers, and high-speed logic chips. These components are crucial for industries such as automotive, computing, wireless communication, and artificial intelligence.
The partnership between PSMC and Tata Electronics is part of a larger initiative by the Tata Group to invest $90 billion in domestic chip production over the next five years.
This collaboration is expected to have far-reaching implications for India’s technology sector. It also aligns with India’s broader goals of attracting foreign investment and fostering technological self-reliance.
The establishment of India’s first 12-inch wafer fab represents a significant step toward creating a robust semiconductor ecosystem in the country. As the global demand for semiconductors continues to rise, India’s entry into advanced chip manufacturing could play a crucial role in addressing supply chain challenges and diversifying the global semiconductor landscape.
Last updated: December 26th, 2025
