Actively Bringing Fab Construction Suppliers from Taiwan to Dholera, Says Powerchip

Powerchip Semiconductor Manufacturing Corporation (PSMC), a leading Taiwanese semiconductor manufacturer, has confirmed that it is actively facilitating the entry of specialised fab construction suppliers from Taiwan to Dholera in Gujarat, where India’s first commercial semiconductor fabrication facility is being developed in partnership with Tata Electronics. Speaking at the Gujarat SemiConnect conference, PSMC President Martin Chu expressed strong confidence in India’s policy framework and said that both the Central and Gujarat governments have created a favourable and secure business environment for international companies looking to invest in the country’s semiconductor sector.

The Tata–PSMC semiconductor fab, with an estimated investment of nearly $11 billion, is one of the flagship projects approved under the India Semiconductor Mission. The facility, coming up in Dholera Special Investment Region (SIR), is designed as a 12-inch wafer fabrication plant and is expected to play a pivotal role in strengthening India’s semiconductor manufacturing capabilities. Alongside this project, several other semiconductor assembly and testing plants—by companies such as Micron Technology, CG Power in partnership with Renesas, Kaynes Semicon, and Tata Group entities—are also under development across the country.

Martin Chu noted that collaboration between PSMC and Tata Electronics has already begun across multiple areas, including fab construction, technology transfer, talent development, and ecosystem building. He emphasized that the involvement of experienced Taiwanese suppliers is crucial to meeting the stringent technical and quality standards required for semiconductor manufacturing. By bringing these suppliers to Dholera, PSMC aims to accelerate construction timelines while simultaneously supporting the development of local capabilities within India’s emerging semiconductor ecosystem.

Highlighting the broader strategic intent, Chu stated that PSMC is encouraging more international partners to participate in India’s semiconductor journey, while also nurturing domestic suppliers to build long-term resilience in the supply chain. He reiterated confidence that the Indian and Gujarat governments will continue to provide policy stability, investment protection, and infrastructure support, which are essential for attracting sustained foreign investment from Taiwan and other global technology hubs.

In parallel, Tata Electronics and PSMC have entered into a memorandum of understanding with Himax Technologies, a Taiwan-based fabless semiconductor company known for its display driver integrated circuits and timing controllers used across consumer electronics, automotive, and industrial applications. The collaboration covers end-to-end production—from chip design and wafer manufacturing to packaging and electronics manufacturing services—serving both Indian and global markets. This partnership is expected to contribute to next-generation display and low-power AI sensing technologies while strengthening supply chain reliability.