Tata Electronics prepares ground for high-end chips

Following the recent groundbreaking of its Rs 91,000-crore semiconductor fabrication plant, Tata Electronics, in partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC), has begun preparations to develop advanced 14-nanometre (nm) chip technology.

According to sources, the plan to manufacture 14nm chips has already been shared with the government as part of Tata Electronics’ long-term business roadmap. These advanced chips will complement the 28nm nodes that the company initially plans to produce at its fabrication unit coming up at Dholera, Gujarat.

The 14nm chips are significantly more advanced, enabling smaller components with higher energy efficiency, faster processing speeds, and improved performance. Such chips are widely used in products like smartphones, laptops, tablets, electric vehicles, and high-performance computing systems.

Sources noted that scaling up from 28nm to 14nm technology could unlock a substantial global order pipeline for Tata Electronics, as demand for advanced semiconductor nodes continues to rise worldwide. Tata Electronics declined to comment on the development.

For its initial 28nm production, Tata Electronics has already secured advance orders up to its planned capacity. Industry estimates suggest that chips in the 28–90nm range currently account for nearly 50% of global demand, though the long-term trend clearly favours advanced nodes.

The Dholera fabrication facility will have a capacity of 50,000 wafers per month and is expected to produce around 3 billion chips annually. These chips will serve sectors such as electric vehicles, defence, consumer electronics, and high-performance computing, catering to both commercial and strategic needs.

The first chips from the Dholera plant are expected by the end of 2026. Tata Sons Chairman N. Chandrasekaran has stated that while a semiconductor fab typically takes about four years to become operational, Tata’s goal is to begin chip production within the 2026 calendar year.

In parallel, the Tata Group is investing Rs 27,000 crore in an Assembly, Testing, Marking, and Packaging (ATMP) facility in Assam, which is expected to commence commercial production by late 2025 or early 2026.

Collectively, the Dholera fab and the Assam ATMP unit are expected to generate nearly 70,000 direct jobs, while the government estimates that semiconductor projects approved under the Rs 76,000-crore incentive scheme will create over 1 lakh indirect employment opportunities.