Powerchip Semiconductor Manufacturing Corp. (PSMC) and Tata Electronics have officially signed a Definitive Agreement in New Delhi to collaborate on building India’s first 12-inch semiconductor fabrication facility in Dholera, Gujarat. This partnership will see PSMC transfer mature process technologies to Tata Electronics and oversee the training of local employees.
On September 26, Indian Prime Minister Narendra Modi met with PSMC Chairman Frank Huang and Vice Chairman Hsien-Kuo Chu, expressing the government’s full support for this Taiwan-India cooperation, along with assurances of administrative backing and investment protections for Taiwanese companies expanding into India.
Prime Minister Narendra Modi (center) meets with Frank Huang (second from left), Chairman of PSMC, and Hsien-Kuo Chu (first from left), Vice Chairman of PSMC.
According to the agreement signed by Chu and Tata Electronics CEO Randhir Thakur, PSMC will play a critical role in the construction and development of the $11 billion facility, which will have a production capacity of 50,000 wafers per month. This project is expected to generate over 20,000 high-tech jobs in the region.
Frank Huang (second from right), Chairman of PSMC, Hsien-Kuo Chu (first from right), Vice Chairman of PSMC, and Randhir Thakur (first from left), CEO of Tata Electronics, meet with Ashwini Vaishnaw (center), Minister of Electronics and Information Technology of India.
During their meeting with Modi, Huang emphasized the importance of creating a business-friendly environment for the semiconductor industry, particularly for the upstream and downstream supply chains involving numerous small and medium-sized enterprises. He also highlighted the vast potential of the Indian market, both in terms of workforce talent and opportunities for collaboration with Taiwan’s chip design industry, positioning the two nations for mutual growth in the global semiconductor market.
Modi reaffirmed his government’s commitment to fully supporting the construction of the 12-inch fab and expressed interest in promoting further collaboration between Taiwan and India in the chip design sector. He also encouraged PSMC to take an active role in the development of India’s semiconductor industry and pledged continued government support for Taiwanese investments.
Hsien-Kuo Chu (left), Vice Chairman of PSMC, and Randhir Thakur (right), CEO of Tata Electronics, sign the Definitive Agreement to build India’s first 12-inch wafer fab in New Delhi.
On the same day, Huang and Chu also met with India’s Minister of Electronics and Information Technology, Ashwini Vaishnaw, who reiterated the Indian government’s intention to foster a favorable business environment and offer investment protections. He emphasized the goal of creating a mutually beneficial, high-tech industrial ecosystem that would drive growth for both Taiwan and India.
