Taiwan-based semiconductor powerhouse Powerchip Semiconductor Manufacturing Corp. (PSMC) is poised to play a pivotal role in the construction of India's inaugural 12-inch wafer fab, situated in Dholera, Gujarat, as reported by the Commercial Daily News on March 1. The fab, slated to commence construction later this year, boasts a targeted monthly capacity of 50,000 wafers and an estimated investment of INR 910 billion (US$11 billion; US$1 = INR 82.5).
This strategic collaboration marks PSMC's entry into India's semiconductor supply chain, aligning with the ongoing trend of accelerating globalization in global semiconductor supply chains. The Indian federal cabinet recently granted approval for the joint proposal presented by Tata Group and PSMC to establish the semiconductor plant in Gujarat, signifying a significant investment milestone in India's pursuit of establishing a self-reliant semiconductor supply chain.
The proposed fab is anticipated to specialize in the production of power management ICs, display drivers, microcontrollers, and high-performance computing logic chips. These products will find applications in diverse sectors such as automotive, computing and data storage, wireless communications, and artificial intelligence (AI).
According to Market Intelligence & Consulting Institute (MIC), a division of the Institute for Information Industry (III), projections indicate that the Taiwanese semiconductor industry's shipment value is set to reach approximately NT$4.17 trillion (US$135.3 billion; US$1 = NT$30.8) in 2024, reflecting a robust year-on-year increase of 13.6%. The foundry sector is expected to spearhead this growth, with an anticipated shipment value of NT$2.41 trillion (US$78.2 billion) in the same year.