Tata Electronics Enlists Tokyo Electron In Push For India's First Fab

In a move towards accelerating semiconductor ecosystem, Tata Electronics has signed a Memorandum of Understanding (MoU) with Japanese chipmaking equipment maker Tokyo Electron (TEL) for collaborating on both front-end fabrication and back-end packaging technologies.

The collaboration will drive the development of semiconductor equipment infrastructure for India's first fabrication facility (fab), currently being built by Tata Electronics in Dholera, Gujarat, and for its assembly and testing facility in Jagiroad, Assam.

Through this partnership, TEL and Tata Electronics will also focus on training Tata Electronics' workforce on TEL equipment, and supporting ongoing improvement and R&D initiatives.

As part of the agreement, TEL will bring its expertise for the MAGIC market — Metaverse, Autonomous Mobility, Green Energy, IoT, and Information & Communications — by offering diversified products. TEL is further exploring opportunities to tap into India's talent pool by establishing engineering services in the country to support its global product development.

Tata Electronics, in collaboration with Powerchip Semiconductor Manufacturing Corporation of Taiwan, is establishing a mega semiconductor fab at Dholera, Gujarat.

The foundation stone for this project was laid by Prime Minister Narendra Modi in March 2024. With an investment of Rs 91,000 crore, the facility is poised to produce 50,000 wafers per month.

The Dholera Fab is expected to begin delivering its first batch of semiconductors by December 2026, addressing the growing global demand in automotive, computing, communications, and AI sectors.

Additionally, Tata Electronics is establishing a greenfield semiconductor assembly and testing facility in Jagiroad, Assam — India’s first semiconductor unit in the North East.

With an investment of Rs 27,000 crore, the facility is expected to create over 27,000 jobs. The first phase of operations is set to begin by mid-2025, with the facility shipping semiconductor chips directly to end-users and original equipment manufacturers both domestically and globally.