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Tata Electronics and Merck Collaborate to Boost Semiconductor Materials in India

Written by: Team Angel OneUpdated on: 3 Sept 2025, 5:35 pm IST
Tata Electronics signed an MoU with Merck Electronics to supply materials and services for its ₹91,000 crore semiconductor fab project in Dholera, Gujarat.
Tata Electronics and Merck Collaborate to Boost Semiconductor Materials in India
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Tata Electronics and Merck Electronics signed a memorandum of understanding (MoU) at Semicon India 2025 in the presence of Union Minister Ashwini Vaishnaw. As per news reports, the agreement outlines cooperation in semiconductor manufacturing and related services.

Scope of Agreement

Merck will supply Tata Electronics with high-purity electronic materials, advanced gas and chemical delivery systems, turnkey fab infrastructure services, and AI-based Material Intelligence solutions. The MoU also covers areas such as semiconductor fabrication infrastructure and chemical and gas distribution.

Dholera Fab Project

The partnership is linked to Tata Electronics’ semiconductor fabrication facility coming up in Dholera, Gujarat. The project involves an investment of ₹91,000 crore (about $11 billion). The fab will manufacture chips for sectors including automotive, mobile devices, and artificial intelligence.

Operational and Data Platforms

Merck will share practices in safety and manufacturing and provide Tata Electronics access to Athinia, a secure data analytics platform. The agreement also includes plans for warehousing, raw material supply chain development, workforce training, and setting up industry standards in India.

Read more: Vikram: India's First 32-bit Semiconductor Chip Developed by ISRO Presented to PM Modi!

Separate Agreement with C-DAC

Tata Electronics has also signed a separate MoU with the Centre for Development of Advanced Computing (C-DAC). This collaboration focuses on semiconductor design and the development of IP capabilities. The two organisations will work on opportunities related to fab, OSAT, and design services.

Conclusion

The MoUs with Merck and C-DAC come at a time when Tata Electronics is progressing with its Dholera fab project. The agreements are expected to support material supply, design development, and related infrastructure for India’s semiconductor sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Sep 3, 2025, 12:05 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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