India Launches First Semiconductor Plant via Tata-Taiwan JV

• Tata Electronics and Taiwan’s PSMC have launched India’s first semiconductor chip plant in Dholera.
• The plant aims to reduce India’s reliance on imported chips used in phones, cars, and other electronics.
• Tata is also setting up a chip testing and packaging facility in Jagiroad, Assam, expected to start by mid-2025.

India has launched its first semiconductor chip manufacturing plant in Dholera, Gujarat, a milestone for the country in the world of technology. The joint venture between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), semiconductor chips are essential to modern electronics: smart devices such as smartphones, laptops, cars, ATMs, and medical equipment.

Semiconductor chips are often referred to as the 'brains' of electronic gadgets; they control the flow of electricity and provide smart features from when your washing machine automatically turns off to reminding the driver to wear his seat belt in the car.

To date, India has imported many semiconductor chips. This plant is intended to supplement imports and help with domestic manufacture. Production of chips is slated to begin in December 2026. Training has tons of Indian employees currently being trained at PSMC in Taiwan in advanced chip manufacturing process control methods.

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In addition to the Gujarat facility, Tata Electronics is setting up another crucial unit, the OSAT (Outsourced Semiconductor Assembly and Test) Plant, in Jagiroad, Assam, that will do semi-conductor chips testing and packaging; the Jagiroad OSAT Plant is expected to commence operations in mid-2025.

Taiwan leads the semiconductor industry, with 60 per cent of the global chip fabrication capacity. Taiwan’s TSMC (Taiwan Semiconductor Manufacturing Company) alone produces about half of the chips made in the world. Through these projects, India is strategically entering the global semiconductor supply chain while ensuring self-reliant electronics manufacturing.