India’s First AI-Driven Chip Factory Coming to Gujarat: Tata Electronics Partners with Taiwan’s PSMC

Tata Electronics, a part of Tata Sons, has signed an important agreement with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to build India’s first AI-enabled semiconductor factory in Gujarat.

PSMC will help with the design and construction of this advanced factory, which will be able to produce up to 50,000 semiconductor wafers every month. These chips will be used for power management, display drivers, microcontrollers, and high-performance computing—meeting the rising demand in areas like AI, automotive, computing, and wireless communication.

This new factory will use cutting-edge automation and machine learning to improve efficiency. It will also bring the latest semiconductor technologies and skills to India, creating a strong base for the country’s own semiconductor industry.

The project will cost around INR 91,000 crores (~US$11 billion) and is expected to create over 20,000 jobs. Tata’s bigger vision for the Dholera region could eventually lead to 1,00,000 jobs as India starts meeting both domestic and global chip needs.

Tata Sons Chairman N Chandrasekaran said this partnership marks a major step for Tata and will help strengthen the global semiconductor supply chain. PSMC Chairman Dr. Frank Huang added that this deal benefits both India and Taiwan, boosting semiconductor cooperation between the two countries.

Tata Electronics has already teamed up with top design firms from Taiwan to ensure this factory meets global standards for quality, safety, and sustainability. The collaboration will strengthen the global supply chain and meet the needs of customers worldwide.