India’s first plant to manufacture semiconductor chips has started in Dholera, Gujarat. This plant has been established by Tata Electronics in collaboration with the Taiwanese company Power-Chip Semiconductor Manufacturing Corporation (PSMC).
These semiconductor chips are used in phones, laptops, vehicles, and many gadgets. Currently, India is dependent on foreign countries for these chips. If its supply stops, the production of many electronic gadgets in the country will fall. With the commencement of the semiconductor plant, India aims to fulfill its needs and minimise foreign dependence. The production of the Chips is expected to begin in December 2026.
What is a semiconductor chip?
Electronic gadgets, for instance, computers, laptops, cars, washing machines, ATMs, hospital machines, and even the smartphones in your hand all work on semiconductor chips. This chip helps in operating these gadgets like a brain. Every electronic item is incomplete without them. Semiconductor chips are made of silicon and are used to control electricity in circuits. You can consider semiconductors as the brain of electronic gadgets.
These chips help electronic items operate automatically. For example, in a smart washing machine, the machine automatically shuts down after the clothes are completely washed. Similarly, when you forget to wear a seat belt in a car, the car alerts you to the same. This happens with the help of semiconductors.
Employees have been sent to PSMC (Powerchip Semiconductor Manufacturing Corporation) in Taiwan for high-level training to learn world-class chip manufacturing.
Talking about the second plant in Assam: Tata is also building an OSAT (Outsourced Semiconductor Assembly and Test) plant in Jagiroad, Assam, which will test and package chips. This may start by mid-2025.
Taiwan makes 60 per cent of the world’s semiconductor chips. According to the Semiconductor Industry Association (SEMI), Taiwan accounts for 60 per cent of global chip fabrication capacity (the ability to physically make semiconductors). TSMC alone manufactures about half of the world’s semiconductors.
