Tata Electronics has entered into an agreement with U.S.-based Analog Devices to jointly manufacture semiconductors in India, according to a Reuters report on September 19. As part of the deal, Tata will invest US$14 billion to build two new semiconductor fabs in India. The first fab, located in Gujarat, is expected to launch the country’s first made-in-India chips by 2026. Additionally, Tata plans to construct a new chip assembly and testing facility in Assam and is expected to begin high-volume production by mid-2025. This facility will specialize in wire bond, flip chip, and integrated systems packaging, with a capacity to produce 48 million chips per day.
The first fab will focus on producing chips for Power Management ICs (PMICs), Display Driver ICs (DDIs), Microcontrollers (MCUs), and High-Performance Computing (HPC) chips, with an anticipated production capacity of 50,000 wafers per month once fully operational.
Currently, Tata’s fab is the only one approved by the Indian government, though more are in the pipeline. Tower Semiconductor and Adani Group recently unveiled plans for a US$10 billion fab in Maharashtra, just slightly lower than Tata’s US$11 billion project.
The global foundry market reached US$123.4 billion in 2023, reflecting a 13% decline compared to 2022. The Taipei-based research institute Market Intelligence & Consulting Institute (MIC) predicts the market will grow by approximately 17%, reaching US$144.4 billion in 2024.