Tata launch India's first chip fab using older technology
Tata Electronics to Begin India’s Semiconductor Manufacturing Push with Mature Chip Technology
Tata Electronics is set to take a significant step in India’s semiconductor ambitions, but with older chipmaking technology than initially anticipated. According to people familiar with the plans, the company’s upcoming fabrication facility in Dholera, Gujarat, will primarily produce semiconductor wafers using 90-nanometer technology, a mature process commonly used in industrial equipment and automotive applications.
The approach represents a more cautious starting point than the company’s previously stated goal of launching production at the more advanced 28-nanometer node. In its annual report for the year ending March 2025, Tata Sons had highlighted 28nm technology as the foundation of its semiconductor strategy. However, sources suggest that expectations may have exceeded what is realistically achievable in the near term as India develops its chipmaking capabilities.
Tata Electronics, which has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC), maintains that the Dholera facility will eventually support technologies ranging from 28nm to 110nm. A company spokesperson said the rollout was always intended to begin with 55nm and 90nm production before expanding to 28nm, which remains a key part of its long-term offering. PSMC echoed that view, noting that introducing advanced semiconductor technologies typically happens gradually, with manufacturers first establishing production using more mature process nodes.
The strategy highlights the steep learning curve involved in semiconductor manufacturing. Despite Tata Group’s extensive industrial experience across sectors such as automotive and chemicals, chip fabrication remains one of the world’s most complex manufacturing processes. Nevertheless, the Indian government sees Tata as central to its efforts to reduce reliance on imported semiconductors and build a competitive domestic industry.
The conglomerate is investing tens of billions of dollars in semiconductor fabrication and assembly facilities while addressing challenges related to infrastructure, technology transfer, and skilled workforce development.
India has also expanded its support for the sector. The government recently approved ₹1.28 trillion ($13.3 billion) in additional incentives aimed at chip design, manufacturing equipment, and supply-chain development. These incentives will apply only to new investments and will complement the $10 billion semiconductor support package launched in 2021, which covers up to 50% of project costs. Tata’s Dholera fabrication plant, estimated to cost $10.7 billion, is among the projects benefiting from these initiatives.
Tata Group Chairman Natarajan Chandrasekaran previously described 28nm as a stable entry point for the company’s semiconductor journey, with plans to move toward more advanced technologies over time.
India’s ambitions, however, face strong competition from established semiconductor leaders such as Taiwan and South Korea, which have spent decades building their industries. Taiwan Semiconductor Manufacturing Co. (TSMC), for example, has already begun mass production at the cutting-edge 2nm node and generates most of its revenue from technologies of 5nm and below, underscoring the technological gap India is seeking to close.
Project News
