By the end of 2026, the Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) are expected to produce their first semiconductor chip from a new plant in Dholera, Gujarat. According to Frank Huang, chairman of PSMC, this facility will be India's first commercial semiconductor fab. The project is anticipated to receive up to 70% of its funding from both central and state government subsidies.
Even before the first chips roll out from the Dholera plant, Tata has secured a deal that positions India among major strategic players. Tata Electronics, a subsidiary of Tata Group, has reportedly signed a strategic agreement with Tesla to supply semiconductor chips for Tesla’s global operations, according to sources cited by ET. While both Tata and Tesla have declined to comment, this development marks a significant achievement for Tata and a pivotal moment for India. With semiconductor chips manufactured in India...
The reliance of global manufacturers on a country for semiconductor chips grants that nation significant strategic power. China, due to its massive chip production capacity and its influence over Taiwan, has wielded considerable power over the rest of the world. As tensions rise and the Western world distances itself from China, there is a frantic push to invest in chip manufacturing to reduce dependency on China and regain control over critical supply chains.
The reported Tata-Tesla deal could spark a trend that enhances India's influence on the global stage, impacting both smaller and larger nations. This partnership might pave the way for India to become a key player in the semiconductor industry, further strengthening its strategic position internationally.
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