Tata-PSMC wafer fab to produce first Indian chip by 2026

Jingyue Hsiao, DIGITIMES Asia, Taipei 0

Credit: AFP

With the technology support from PSMC, Tata's wafer foundry, the first commercial fab in over three decades, is expected to be operational by the end of 2026, according to PSMC chairman.

In an online interview with the Economic Times, PSMC chairman Frank Huang disclosed that the wafer fab, built by PSMC and operated by Tata, will make its first chip by the end of 2026. The wafer fab in Dholera, Gujarat, will make chips on 28nm nodes for applications such as MCU, PMIC, DDI, and logic ICs.

Huang said the 28nm nodes can meet India's demands, and after several years, the Dholera fab will move towards making higher-end chips. He said PSMC and Tata had agreed on the technology transfer and would subsequently discuss the contours of the partnership. According to a statement released by the Press Information Bureau of India, the Dholera wafer fab will cost INR 910 billion. 70% of the investments will come from subsidies from India's central and state governments.

According to a statement by the Prime Minister's Office of India, India held a ceremony with Narendra Modi laying the foundation stone of the three semiconductor projects approved in early March, including Tata's OSAT facility in Morigaon, Assam, CG Power's OSAT facility in Sanand, Gujarat, and Tata's wafer fab in Dholera.

Meanwhile, PSMC, the world's seventh-largest foundry, hopes the Fab IP business model introduced in the Dholera wafer fab can be a new growth engine for the company, as countries around the world are desperate for building their chipmaking capacities on their home turfs to achieve national and economic security. Besides, faced with the emerging competition from foundry players, particularly from China, PSMC has to look for other revenue sources besides its foundry business. Under the Fab IP business model, PSMC will help construct the fab and provide technology transfer and personnel training.