Tata electronics, TCS to develop India’s first domestic chips by 2026

2 min read Last Updated : Sep 13 2024 | 10:27 AM IST

Tata Consultancy Services (TCS) is collaborating with Tata Electronics Pvt Ltd, as the conglomerate aims to introduce India’s first domestically produced chips by 2026, according to a senior executive from TCS, as reported by Mint.

The news reported Sreenivasa Chakravarti, vice-president and global head of TCS’s digital engineering division, as saying that TCS, which specializes in semiconductor design and engineering for its clients, has multiple points of engagement in the chip manufacturing process, where Tata Electronics is leading the charge.

He also highlighted other shared services, including software solutions and intellectual property (IP)-based products for semiconductors.

Three semiconductor facilities

In February, the India Semiconductor Mission approved the establishment of three semiconductor manufacturing facilities to advance this sector. Tata Electronics is leading the development of two of these projects. One is an $11-billion greenfield chip manufacturing plant in collaboration with Taiwan’s Powerchip Semiconductor (PSMC) in Dholera, Gujarat, which will have an initial output capacity of 50,000 wafers per month. The second is a $3.26-billion facility in Assam, focused on chip assembly and testing, the report said.

Tata Electronics aims to have the first chips from the Assam facility available by late 2025 or early 2026, targeting industries such as automotive, electronics, power, consumer goods, and healthcare.

Strong design, manufacturing gap

The Mint report quoted Omkar Tanksale, a senior IT research analyst at Axis Securities, saying TCS stands out as the first Indian technology services company to establish a robust expertise in semiconductor engineering and services.

TCS has a significant presence in semiconductor design, engineering, and software development for semiconductor applications globally. However, unlike HCL Technologies, which announced a joint venture with China’s Foxconn in January to establish a chip testing facility, TCS has not yet entered the chip manufacturing sector, the report said.

First Published: Sep 13 2024 | 10:27 AM IST