Tata Electronics signs MoU with Japanese semicon firm for equipment infrastructure

Tata Electronics has signed a memorandum of understanding with Tokyo Electron Limited (TEL) for semiconductor equipment infrastructure. TEL will support Tata Electronics in accelerating the infrastructure at its ongoing semiconductor fab project in Dholera, Gujarat and the assembly and testing facility in Jagiroad, Assam.

Additionally, the two firms will also collaborate on training the workforce at the two plans to work on TEL equipment and further the ongoing R&D activities. 

“This strategic collaboration spans both front-end fabrication and back-end packaging technologies, highlighting our commitment to delivering exceptional support and value to Tata Electronics.  By leveraging our collective strengths, we aim to accelerate development and drive innovation across multiple technology nodes.  Together, we are poised to set new benchmarks in the industry, fostering a robust and dynamic semiconductor landscape that will benefit all stakeholders,” said Toshiki Kawai, President ＆ CEO, TEL. 

TEL further aims to offer diversified products for the metaverse, autonomous mobility, green energy, IoT, and information communications in India. TEL is exploring opportunities to leverage India's talent to establish an engineering service in India to support its global product development.

To be sure, Tata Electronics is investing INR 91,000 crores ($11bn) to build India's first semiconductor fab in Dholera, Gujarat, and an additional INR 27,000 crores ($3bn) for an assembly and testing facility in Jagiroad, Assam. These plants will produce chips for automotive, mobile, AI, and other global markets. These two plants, along with CG Power and Japan-based Renesas’ semiconductor plant in Gujarat’s Sanand at a cost of ₹7,600 crore were the facilities approved by the Union Cabinet in February. Further, last week, Kaynes Semiconductor’s project became the latest facility to be approved under the India Semiconductor Mission.