India's Chipmaking Dream Takes Flight with Tata-PSMC

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has reportedly declined an invitation from the Indian government to set up a semiconductor manufacturing plant in the country, according to Digitimes.

In the wake of TSMC’s decision, India finalized a deal with Powerchip Semiconductor Manufacturing Corporation (PSMC), which has partnered with Tata Electronics. Under this agreement, PSMC will lead the design, construction, and workforce training for a new fabrication facility, while the Tata Group will manage its operations.

India remains committed to becoming a global semiconductor hub, with six fabrication plants approved to date. A flagship project by Tata and PSMC in Gujarat aims to produce 50,000 wafers per month by 2026. Other major initiatives include a HCL-Foxconn joint venture in Uttar Pradesh, Renesas Electronics’ OSAT (Outsourced Semiconductor Assembly and Test) facility, and Micron’s upcoming assembly and testing unit.

TSMC has similarly declined proposals from Qatar and Singapore, opting instead to expand in countries with well-established semiconductor ecosystems such as the United States, Japan, and Germany.

News by Rahul Yelligetti.