Tata bets on mature chips to build India’s semiconductor manufacturing base

MUMBAI: Tata Group has decided to chip in where it matters most, but they are not pushing the micro-boundaries just yet. The multinational conglomerate is set to make its highly anticipated debut in the semiconductor manufacturing arena by deliberately focussing on mature process nodes rather than rushing into cutting-edge technologies. Developed in tandem with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), this phased rollout aims to establish a reliable foundation for India’s domestic chip ecosystem before targeting smaller, highly complex nodes.

While the tech world often obsesses over the latest 3nm or 2nm processors powering flagship AI hardware and premium smartphones, the industry relies heavily on older generations. Tata’s Dholera facility in Gujarat plans to manufacture wafers across multiple nodes spanning 28nm to 110nm, beginning with mature 55nm and 90nm variations. These components remain the indispensable workhorses for vital sectors including automotive electronics, medical equipment, internet of things (IoT) devices, smart consumer appliances, and power management systems.

Building a bleeding-edge fabrication facility presents monumental challenges, requiring multi-billion-pound extreme ultraviolet (EUV) lithography machines, hyper-specialised engineering talent, and remarkably intricate global supply chains. By opting for a gradual transition, the project mitigates steep operational risks, allows ample time to train a skilled domestic workforce, and addresses immediate global shortages in industries facing high, consistent volume demands. Anchoring the initial semiconductor journey around highly stable, well-established mature nodes serves as a strategic launchpad to build operational expertise systematically.

This massive private investment serves as a cornerstone for the India Semiconductor Mission, which has aggressively expanded its policy support and financial incentives to reposition the nation as a resilient global manufacturing hub alongside South Korea and Taiwan. Rather than locking horns immediately with advanced foundry giants like TSMC or Intel, the joint venture builds sustainable industrial capability from the ground up. If executed successfully, the initiative is poised to slash import dependencies, attract global electronics giants, create thousands of highly skilled technical jobs, and securely lay the groundwork for next-generation advanced silicon fabrication on Indian soil.