Tata Electronics Ltd has started exporting computer chips made in Bengaluru to other countries. These chips are packed at Tata Electronics’ research center and are headed to partners in Japan, the US, and Europe. This move comes as Tata Electronics prepares to open a new chip packaging unit in Assam and a big chip factory in Gujarat, worth $10 billion.
According to insiders cited by ET, Tata Electronics has begun exporting chips packaged in Bengaluru to international clients. While these products are still in the pilot stage, the company is expanding its customer base, marking a crucial step towards commercial production slated for 2027. The chips, ranging from 28 to 65 nanometers, are nearing the final stages of tape-out, the crucial phase before manufacturing.
“These chips hold versatility as they have not been tailored for a specific purpose,” one source highlighted. “Tata Electronics’ products span various domains,” he added. Notably, Tata Electronics’ endeavors extend beyond chip exports, as evidenced by its speculated collaboration with Tesla to supply semiconductor chips for the automotive giant’s global operations.
Neil Shah, Vice President at Counterpoint Research, emphasized the importance of Tata Group showcasing its chip designing and manufacturing capabilities ahead of the commissioning of its fabs in the next 30-36 months. He stressed the need for robust front-end processes and diligent back-end operations to establish Tata Electronics as a one-stop-shop for semiconductor design and manufacturing in India.
The Dholera chip foundry, a joint venture between Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation, is poised to be a significant player in the semiconductor landscape. With a planned capacity of up to 50,000 wafer starts per month, the facility will produce chips across leading nodes such as 28 nm and 40 nm, along with legacy nodes like 55 nm and 90 nm.
Additionally, Tata Group is investing in an outsourced assembly and testing (OSAT) unit in Assam, underscoring its commitment to the entire semiconductor value chain. Other players, such as CG Power and HCL Group-Foxconn joint venture, are also venturing into chip assembly and testing, signaling a broader push towards self-reliance and technological advancement in India’s semiconductor ecosystem.
