October 4, 2024 /SemiMedia/ — Powerchip Semiconductor Manufacturing Corp. has announced a partnership with Tata Electronics to establish India's first 12-inch wafer fab in Dholera, Gujarat. The final cooperation agreement was signed during a ceremony attended by Powerchip's General Manager Martin Chu and Tata Electronics CEO Randhir Thakur, with Powerchip Chairman Frank Huang also present.

The total investment for the wafer fab is $11 billion, with a planned monthly capacity of 50,000 wafers supporting technology nodes from 28 to 110 nanometers. This facility marks a significant milestone in India, addressing the country's lack of commercial wafer fabs.

The new wafer fab will manufacture various types of chips, including power management, panel driver chips, microcontrollers, and high-speed computing logic chips. These products will cater to the growing demands in markets such as AI, automotive, computing, storage, and wireless communication. Not only will it meet domestic market needs, but it will also open doors for India in the global semiconductor landscape.

Importantly, the collaboration between Powerchip and Tata Electronics will transfer mature process technologies and provide training for Indian employees, enhancing local skill levels and job opportunities. The Indian government estimates that the project will create over 20,000 high-tech jobs in the region.

With this 12-inch wafer fab, India will establish its own production capabilities in critical sectors like automotive chips, wireless communication, and artificial intelligence, reducing reliance on imports.