Tata Electronics and TCS Will Develop India’s First Homegrown Chips by 2026

Nitin Konde, Apoorva Bajj

Sep 16, 2024 — 2 min read

Tata Electronics and TCS Will Develop India’s First Homegrown Chips by 2026

A top official from Tata Consultancy Services (TCS) has stated that the conglomerate is working along with Tata Electronics Pvt Ltd to achieve its goal of introducing India's first chips that are created domestically by the year 2026, as reported by a media outlet,

The news article cited details provided by Sreenivasa Chakravarti, VP and head of TCS's digital engineering division worldwide. Chakravarti said that TCS, a firm that focuses on semiconductor design and engineering, is involved in the chip manufacturing process at various stages, with Tata Electronics at the forefront. Additionally, Chakravarti brought attention to several additional shared services, such as software solutions and goods based on intellectual property (IP) for semiconductors.

At present, a significant number of companies are establishing operations in India to develop technologies and services for global markets. However, there is also a market for semiconductors in India. As a result, Chakravarti believes that the issue is to construct something for India from within India.

India Semiconductor Mission

As part of efforts to improve the semiconductor industry, the India Semiconductor Mission gave its approval in February for the establishment of three manufacturing facilities for semiconductors. There are two of these projects that are being developed by Tata Electronics as the principal company. The first of these is a greenfield chip manufacturing plant in Dholera, Gujarat, that will be constructed in conjunction with Taiwan's Powerchip Semiconductor (PSMC) and will have an initial output capacity of 50,000 wafers per month. The plant will cost $11 billion. According to the reports, the second factory is located in Assam and is valued at $3.26 billion. Its primary focus is on chip assembly and testing.

The first chips to be manufactured at the Assam facility are expected to be made accessible by Tata Electronics by the end of 2025 or the beginning of 2026. The company intends to target businesses such as the automotive, electronics, power, consumer goods, and healthcare sectors.

First Indian Technology Services Company With Expertise in Semiconductor Engineering

TCS is the first Indian technology services company to create a robust capability in semiconductor engineering and services, according to Omkar Tanksale, a senior IT research analyst at Axis Securities. Globally, TCS has a substantial presence in the fields of semiconductor design, engineering, and software development for applications involving semiconductors.

Throughout the course of the year, Tata Electronics has been establishing collaborations with a wide variety of worldwide companies and nations in order to supply semiconductor chips.

Tesla has entered into a strategic agreement with Tata Electronics in April to acquire semiconductor processors for its global operations.

Additionally, a few days ago, Tata Electronics and Tokyo Electron Limited (TEL) inked a memorandum of understanding (MoU) with the purpose of establishing a semiconductor equipment infrastructure.