In Short:
Tata Electronics Ltd has begun exporting semiconductor chips packaged at a pilot line in Bengaluru. The chips are being shipped to partners in Japan, US, and Europe. The company is also laying groundwork for a new chip packaging unit in Assam and a $10 billion chip foundry in Gujarat. Tata Electronics is in final stages of successfully tape-out semiconductor chips in various sizes. The company aims for commercial production by 2027.
Tata Electronics Ltd Begins Exporting Semiconductor Chips
In a significant move aimed at enhancing India’s semiconductor capabilities, Tata Electronics Ltd has initiated the export of limited quantities of semiconductor chips packaged at a pilot line in its research and development center in Bengaluru. These packaged chips are being shipped to partners in Japan, the US, and Europe as Tata Electronics prepares for the establishment of a new chip packaging unit in Morigaon, Assam, and a $10 billion chip foundry in Dholera, Gujarat.
Export of Packaged Chips
According to sources, Tata Electronics has already begun shipping packaged chips to international customers. These products are still in the pilot stage, with plans for commercial production expected to commence in 2027. Additionally, the company is nearing the final stages of tape-out for semiconductor chips in various nanometer nodes.
Focus on Diversified Products
The exported chips have the potential to be used in a wide range of products since they have not been designed for a specific purpose, providing versatility in their application. For example, the chips could be used in smartphones, tablets, laptops, and even smart home devices. One potential application for these chips could be in Apple’s new iPads, as the company is always looking for the latest and most powerful components to improve their devices. With their customizable nature, these chips could also be used by other technology companies looking to enhance the performance of their products.
Tata’s Strategic Deal with Tesla
Earlier reports indicated that Tata Electronics has secured a strategic agreement with Tesla for the supply of semiconductor chips globally.
Market Expert Insights
Neil Shah from Counterpoint Research emphasized the importance of Tata Group showcasing its chip designing and manufacturing capabilities to potential partners and customers to leverage its expertise effectively when the fabs become operational in the coming years.
Future Expansion Plans
Tata’s chip foundry in Dholera, in partnership with Powerchip Semiconductor Manufacturing Corporation, is set to have a significant production capacity, focusing on leading nodes like 28 nm and 40 nm. Additionally, the group is working on an outsourced assembly and testing unit in Assam to further strengthen its semiconductor value chain.
Industry Developments
Several companies in the semiconductor industry in India, such as Tessolve Semiconductor, CDIL, and SCL, are also involved in chip packaging. However, experts believe that these efforts are not comparable in scale to businesses like Micron or Tata Group.
