Tata Electronics, PSMC, and Himax Partners to Manufacture Display Semiconductors in India

Tata Group Company Tata Electronics has signed a memorandum of understanding (MoU) with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies to manufacture display semiconductors and ultralow power AI sensing products in India. 

The agreement was announced at the IESA Vision Summit, where Tata Electronics CEO Randhir Thakur confirmed that the partnership includes setting up a display chip manufacturing unit in Dholera, Gujarat.

Semiconductor Manufacturing in Dholera

Under this agreement, Tata Electronics will manufacture display chips for Himax using PSMC’s technology. The plant in Gujarat will focus on producing display-related semiconductors for various applications, including televisions, mobile phone screens, camera image sensors, LEDs, and OLEDs.The project is part of Tata Electronics’ broader expansion into semiconductor manufacturing.

The company is also setting up a semiconductor fabrication plant in Gujarat with an investment of ₹91,000 crore, in collaboration with PSMC. The Indian government is providing 50% of the investment as part of its semiconductor manufacturing initiative. The plant will have a production capacity of 50,000 wafers per month, catering to sectors such as electric vehicles, telecom, and defense.

Additional Investments in Assam

In addition to the Dholera facility, Tata Electronics is setting up a testing and packaging (TSAT) plant in Assam with an investment of ₹27,000 crore. This facility aims to produce 48 million chips per day and support semiconductor packaging and testing operations.

PSMC and Himax’s Role

PSMC is the seventh-largest pure-play foundry in the world, operating four 12-inch fabs and two 8-inch fabs in Taiwan. It has an annual production capacity of 2.1 million 12-inch equivalent wafers.

Himax Technologies is a fabless semiconductor company specializing in display drivers and AI sensing solutions. The partnership will allow Himax to manufacture its display chips in India under Tata Electronics’ production capabilities.

India’s Display Semiconductor Expansion

As per the reports, the partnership aligns with India’s goal of expanding its semiconductor industry and building a domestic supply chain. Tata Electronics’ entry into display semiconductor manufacturing comes at a time when other companies, including Vedanta, have also proposed semiconductor projects in Gujarat. However, Vedanta’s planned display fabrication unit has not yet received government approval.

Conclusion

This agreement enables Tata Electronics, PSMC, and Himax to offer end-to-end semiconductor solutions, covering chip design, manufacturing, packaging, and electronics manufacturing services.

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