Tata Electronics, Merck Sign MoU to Bolster India's Semiconductor Materials

• Tata Electronics and Merck to collaborate on semiconductor materials and infrastructure
• Merck to supply products, services, and AI solutions for Tata’s ₹91,000 crore Fab in Dholera
• Partnership to boost supply chains, talent, and India’s semiconductor value chain

Tata Electronics Private Limited, major player in electronic and semiconductor manufacturing in India, has signed a Memorandum of Understanding (MoU) agreement with Merck to create a partnership as part of its focus of increasing the semiconductor ecosystem in India.

Additionally, the partnership will help expand semiconductor materials, fabrication-related infrastructure, and specialty chemical and gas distribution.

With this agreement, Tata Electronics will have access to Merck's entire portfolio of high-purity electronic materials, chemical and gas delivery systems including its advanced dispensing systems, turnkey fab infrastructure services in areas of local sterilization and onsite delivery, and AI-based Material Intelligence solutions, all of which will support Tata Electronics' planned semiconductor fabrication plant (Fab) in Dholera, Gujarat, where ₹91,000 crores (USD 11 billion) will be invested in the fab.

The partnership will also involve knowledge sharing and best practices around safety and excellence in manufacturing. Merck will help Tata Electronics access digitised tools such as Athinia, which enables safe data analytics and collaboration across the value chain of semiconductors.

Also Read: India, Japan Partner to Strengthen India's Semiconductor Ecosystem

Furthermore, the companies will explore local warehousing, establishing a supply chain for raw materials, talent generation, and establishing industry standards specifically for India.

The MoU is closely aligned with the goals of the India Semiconductor Mission, showing both companies' commitment to creating indigenous capabilities in this important industry.

Tata Electronics plans to have a Fab in Dholera that can produce semiconductor chips for various applications in sectors such as automotive, mobile devices, artificial intelligence, and other developing technologies for global customers.

As Fab construction speeds up, it becomes necessary to develop partnerships within the semiconductor ecosystem. Merck brings substantiated demonstration of materials, sub-fab services, and sustainability to India with its known benchmark on global standards and capabilities.

This collaboration promotes Tata Electronics operations, but also triggers momentum towards building a semiconductor ecosystem in India and raising India's position within a global value chain.