Media365
The Tata Group company is preparing to manufacture chips largely based on the 90nm process at its semiconductor fabrication facility in Dholera, Gujarat, Bloomberg News reported on Friday, citing people familiar with the matter.
The move marks a more cautious beginning for India’s semiconductor manufacturing ambitions. Tata Sons, the holding company of the conglomerate, had earlier indicated that its chipmaking journey would begin with the more advanced 28nm technology node.
A 90nm process is considered a mature technology widely used for industrial applications, automobiles and other lower-end semiconductor products. However, it faces the risk of losing competitiveness as the global industry moves towards increasingly advanced nodes.
Tata Electronics’ initial focus on older technology reflects the steep learning curve involved in semiconductor manufacturing, an industry that requires decades of expertise, specialised infrastructure and highly skilled talent.
Tata says 28nm remains part of roadmap
A Tata Electronics spokesperson told Bloomberg News the Dholera semiconductor fab will manufacture chips across technology nodes ranging from 28nm to 110nm.
“The plan was always to start with 55nm and 90nm, followed by 28nm,” the spokesperson said, adding that 28nm “will be a key part of our offering.”
Tata Electronics has partnered with Taiwan-based Powerchip Semiconductor Manufacturing Corp (PSMC) for technology support for the project.
PSMC spokesperson Eric Tang said the partnership covers multiple technology nodes, with 28nm being the most advanced process.
“It is common that the introduction of the technology platform will be gradual, starting with more mature nodes,” Tang said in an emailed response, according to Bloomberg News.
India’s semiconductor push faces early hurdles
The Dholera fab is central to Prime Minister Narendra Modi’s push to build a domestic semiconductor ecosystem and reduce India’s dependence on imports.
The Tata Group is investing billions of dollars in semiconductor manufacturing and assembly facilities as India attempts to establish itself as a global chip manufacturing hub.
However, the country is entering a sector dominated by established players such as Taiwan, South Korea and the United States, which have built semiconductor capabilities over several decades.
Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and supplier to companies such as Apple and Nvidia, has already moved into advanced technologies including 2nm production.
While 28nm chips remain commercially important and are used in areas including automobiles, consumer electronics, communication equipment and industrial applications, beginning with 90nm would place Tata initially in a less lucrative segment of the semiconductor market.
Government expands semiconductor incentives
The Indian government on Wednesday
approved Rs 1.28 trillion ($13.3 billion) in new incentives aimed at boosting chip design, manufacturing equipment and semiconductor supply chains.
The new funding will support future investments but will not offset spending already committed by companies.
The incentives add to India’s existing $10 billion semiconductor support programme announced in 2021, under which the government agreed to provide financial assistance for chip manufacturing projects, including Tata’s Dholera facility.
