Tata Electronics is considering the establishment of two more semiconductor fabrication plants at its current site in Gujarat, where its first fab is under development. The initial plant, being developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is set to begin operations by 2026 with a planned investment of ₹91,000 crore.
The decisions on the timing and partners for the additional fabs will be made in the coming years after evaluating the performance of the first unit and global semiconductor trends. The new fabs will be of similar scale to the initial facility, focusing on the same technology and production specifics.
The first fab, which started its foundation work in March at the Dholera Special Investment Region, will produce chips for power management, display drivers, microcontrollers, and high-performance computing. It is expected to reach a peak production capacity of 50,000 chips per month.
Tata Electronics is also planning infrastructure improvements and is working with Tata Group companies and other buyers to finalize agreements for chip supply. Additionally, the company is developing a residential complex for 4,000-5,000 workers and building a local semiconductor supply chain ecosystem.
