By 2030, the Global semiconductor industry is predicted to grow to a whopping Rs. 8.28 lakh crore or $1 trillion and Indian semiconductor demand is expected to go beyond $110 billion.
In 2024, the revenue in the Indian Semiconductor market is expected to hit Rs. 68,954.57 crore or $8.32 billion. Among these, Integrated Circuits hold the largest share, with a projected market volume worth Rs. 31,162.01 crore or $3.76 billion.
Taking a significant step towards developing India’s own semiconductor ecosystem, Tata Group enters the global semiconductor industry.
Tata Electronics in partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan will set up a mega semiconductor fabrication facility (Fab) in Dholera, Gujarat.
Construction of this facility will start this year, with an investment of up to Rs. 91,000 crores, generating more than 20,000 direct and indirect skilled jobs in the region.
This facility will be capable of manufacturing capacity of up to 50,000 wafers per month, incorporating cutting-edge automation technology driven by data analytics and machine learning to ensure top-notch factory efficiency.
How will India benefit from this partnership?
The new semiconductor Fab will produce chips used for various applications such as power management IC, display drivers, microcontrollers (MCU) and high-performance computing logic.
This will serve the increasing demand in markets like automotive, computing and data storage, wireless communication and AI.
This initiative will further bring in cutting-edge semiconductor technologies, advanced skills & talent, along with a network of suppliers and partners in semiconductor manufacturing. It will lay the groundwork for building an indigenous semiconductor ecosystem in India.
With this Fab, India will be able to meet the growing chip demand from both domestic and global customers in the automotive, computing, communications, and AI markets for the first time.
Tata Group’s plan to establish multiple fabs in Dholera is expected to create more than 1 lakh skilled jobs and position India as a significant supply chain partner in the global semiconductor industry.
Here are four Tata Group stocks that could benefit from the collaboration between Tata Electronics and Taiwan’s PSMC.
Tata Elxsi Limited
The company is amongst the leading providers of design and technology services worldwide, serving industries including Automotive, Broadcast, Communications, Healthcare, and Transportation.
As a Lattice semiconductor design partner, Tata Elxsi offers Lattice FPGA-based systems to a wider range of industrial and automotive clients.
The company’s AI CoE combined with semiconductor expertise has enabled it to deliver innovative solutions, making it an integrated design and technology service provider.
Tata Technologies Limited
Incorporated in 1994, Tata Technologies is a global engineering services company offering product development and digital solutions.
Tata Electronics, a wholly-owned subsidiary of Tata Technologies, entered into a partnership with PSMC to set up this semiconductor fab.
This move will greatly reduce the risk in global supply chains, making India a key player in the global semiconductor industry, and accelerate its progress towards providing high-tech job opportunities for Indian youth.
Tata Investment Corporation Limited
The company invests in a diversified portfolio of quoted and unquoted securities of companies, including Tata Group companies, which are engaged in various businesses with a history of strong operating and financial performance.
Since companies such as Tata Elxsi, TCS, Tata Tech, and others under the Tata Group are involved with semiconductors, Tata Investment Corp. could also benefit from the recent collaboration between Tata Electronics and Taiwan’s PSMC.
Tata Consultancy Services Ltd
Tata Consultancy Services (TCS) is a renowned IT services, consulting and business solutions organization, offering a wide range of business, technology and engineering services and solutions.
According to the May 2021 filings on the stock exchanges, TCS was recognised as a leader in Semiconductor Engineering Services by Everest Group.
The company’s comprehensive portfolio of offerings, proactive innovation in semiconductor engineering engagements, proprietary assets and thought leadership, were highlighted as their key strengths.
Written by Shivani Singh
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Wanda Parisien is a computing expert who navigates the vast landscape of hardware and software. With a focus on computer technology, software development, and industry trends, Wanda delivers informative content, tutorials, and analyses to keep readers updated on the latest in the world of computing.
