Tata Electronics Pvt. Ltd. plans to produce India's first semiconductor wafers using older technology than initially anticipated. The company will establish a large-scale chip production plant in Dholera, Gujarat, primarily utilizing 90-nanometer process technology, according to sources familiar with the matter. This choice represents a significant shift from the previously expected 28-nanometer technology, which Tata Sons Pvt. Ltd. had highlighted in its annual report for the year ending March 2025.
Key Details
The decision to begin with 90-nanometer technology, which is considered mature and primarily suited for lower-end industrial applications and automotive uses, indicates the challenges India faces in developing a domestic semiconductor industry. A spokesperson for Tata Electronics stated that the Dholera facility will manufacture chips ranging from 28 nm to 110 nm, emphasizing that the plan was always to start with 55 nm and 90 nm before progressing to 28 nm.
Background
Tata Electronics has partnered with Taiwan-based Powerchip Semiconductor Manufacturing Corp. for this venture. Eric Tang, a spokesperson for Powerchip, noted that the introduction of new technology often occurs gradually, beginning with more established nodes. This approach reflects Tata Group's current position in the complex semiconductor manufacturing landscape, despite its extensive experience in various manufacturing sectors.
This development could influence the semiconductor sector, particularly in India, as it highlights the challenges of scaling domestic production capabilities. The reliance on older technology may impact the competitiveness of Indian semiconductor products in the global market. Investors will watch for updates on the timeline for the Dholera facility's operations and any further advancements in technology adoption.