In a bid to boost the semiconductor industry in India, TCS and Tata Electronics Pvt Ltd have come up with plans to manufacture India’s first indigenously developed semiconductor chips by 2026. The announcement is made as part of Tata Group’s strategic direction to make India a global hub in the emerging field of chip manufacturing.
The vice president and the global head of TCS’s digital engineering division, Sreenivasa Chakravarti, disclosed the company’s heavy investment in the chip manufacturing process, given its experience in semiconductor design and engineering.
On the other hand, Tata Electronics is leading the manufacturing side with two semiconductor plants sanctioned by the India Semiconductor Mission.
The first facility, an USD 11 billion greenfield chip manufacturing plant in Dholera, Gujarat, will be set up with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).
The plant will be manufacturing 50,000 wafers per month, which will be a big step forward for the semiconductor industry in India. The second facility, a USD 3.26 billion chip assembly and testing plant in Assam, is expected to start operations by late 2025 or early 2026, focusing on automotive, electronics, power, consumer goods, and healthcare industries.
TCS is also said to be the first Indian technology services company to gain a firm base in semiconductor engineering and services. But the company has not entered the manufacturing segment, while its competitor HCL Technologies has recently signed a joint venture deal with China’s Foxconn to establish a chip testing facility.
Tata Group’s grand strategy is on the cards to fill the gap of designing and manufacturing semiconductors in India and make the country a global hub for the same.
Given the fact that the world is fast turning into a technological hub, the success of this partnership could determine the future of India’s economy and technology.
