Tata Electronics Ltd has commenced the export of semiconductor chips packaged at a pilot line situated in its Bengaluru-based research and development center, a significant move poised to bolster India’s semiconductor capabilities.
ET reported that Tata Electronics is sending packaged chips to multiple partners in Japan, the US, and Europe. The company has been actively packaging chips at the facility and is currently shipping them to overseas customers. Moreover, Tata Electronics has forged partnerships with multiple entities and is in the process of expanding its customer network. Some of these products are still undergoing pilot testing.
In addition to packaging, the company is also nearing the completion of the design phase for semiconductor chips in various sizes, including 28nm, 40nm, 55nm, and 65nm, as well as some other higher nodes. This advancement suggests that they are in the final stages before sending these designs for manufacturing, a phase commonly referred to as “tape-out” in the semiconductor industry.
Prior to achieving a successful tape-out, there are multiple rounds of development. Therefore, some of these products will be in advanced stages of research and development, and they will be dispatched to specific customers to gather feedback for testing and further improvement. Commercial production is slated to commence in 2027.
Tata currently stands at the forefront of semiconductor manufacturing in India. Earlier this year, the Union Cabinet approved the establishment of the country’s first semiconductor fab, to be set up by the Tata Group in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC).
During that time, IT Minister Ashwini Vaishnaw stated that Tata Electronics Pvt Ltd’s (TEPL’s) semiconductor fabrication plant would be located in Gujarat’s Dholera with a production capacity of 50,000 wafers per month.
Meanwhile, Tesla has entered into a strategic agreement with Tata Electronics to procure semiconductor chips for its global operations. The Indian government was reportedly evaluating proposals totaling $21 billion in investments as part of its initiative to bolster chip manufacturing within the country.
In 2021, the government launched the Semicon India program, allocating INR 76,000 crore to provide incentive support to companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors/sensors fabs, and semiconductor packaging and design.
Subsequently, in 2022, the India Semiconductor Mission (ISM) was launched to cultivate a robust semiconductor and display ecosystem, with the aim of positioning India as a key global hub for electronics manufacturing and design.
India’s semiconductor industry is projected to reach a market value of $55 billion by 2026, fueled by the growing demand for smartphones, automobiles, and data storage. Semiconductor chips are expected to play an increasingly integrated role across various sectors of India’s economy, including aerospace, automotive, communication, IT, clean energy, defense, and others.
