May 7, 2025 /SemiMedia/ — Tata Electronics is advancing its semiconductor ambitions with construction underway on a wafer fab in Dholera, Gujarat and a packaging plant in Assam. The facilities, supported by Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC), began construction in March 2024, with chip production targeted to begin in 2026.

The Dholera fab will focus on manufacturing power management ICs, display drivers, and microcontrollers. According to industry sources, NXP Semiconductors is exploring the possibility of aligning select product lines with Tata’s Indian fab operations.

If confirmed, the deal could follow a similar framework to Tata’s collaboration with Analog Devices Inc. (ADI), which signed an MoU with Tata Electronics, Tata Motors, and Tejas Networks to assess semiconductor manufacturing opportunities in India.

Reports also indicate that Tata plans to build two additional fabs once its first facility becomes operational. These moves underscore a broader trend among fab-lite companies seeking localized production to serve key markets amid rising geopolitical uncertainty.

Tata Group, spanning from steel to IT, is strategically positioned to capitalize on shifting global supply chains, especially as Western companies diversify manufacturing away from China.

Tesla Inc. may also emerge as a future customer. CEO Elon Musk was previously reported to be in discussions with Indian Prime Minister Narendra Modi regarding a potential US$2–3 billion investment in electric vehicle manufacturing in India—possibly creating demand for local semiconductor sources.