Ratan Tata's company inks Rs 91000 crore pact with Taiwan firm to build India's first...

Tata Group, once led by Ratan Tata, is one of the largest groups in India with a presence in several sectors. The group through its various companies sell cars to FMGC products. But now, one of its companies, Tata Electronics, has inked a major pact with Taiwan's PSMC to build India's first semiconductor manufacturing plant in Gujarat.

The company on Thursday announced that it concluded an agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC). The Taiwan firm will provide technology support for the Dholera wafer fab of the Indian tech major. Tata Electronics is setting up a chip manufacturing unit in Dholera at an investment of up to Rs 91,000 crore (about USD 11 billion).

As per the agreement, PSMC will provide design and construction support to build India's first AI-enabled greenfield fab in Gujarat, license a broad portfolio of technologies and provide engineering support to the fab unit. "We are pleased to partner with PSMC, whose technology and expertise will significantly accelerate our roadmap to pioneer semiconductor manufacturing in India. It will position us to play a key role in the growing semiconductor market to serve global customers," Tata Sons Chairman N Chandrasekaran said.

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"Tata Group's multi-fab vision for Dholera is projected to create over 1,00,000 skilled jobs," the statement said. Tata Electronics' Dholera-based Fab will have a manufacturing capacity of up to 50,000 wafers per month.

(With inputs from PTI)