Power Semiconductor Manufacturing Co. has launched its ambitious expansion into India’s nascent chip sector, receiving initial payments from Tata Group for intellectual property rights as both companies push forward with plans for a 12-inch wafer fabrication plant.
The Taiwanese chipmaker dispatched its engineering teams to Mumbai and Gujarat’s Dorela Science Park, where they’ll collaborate with Tata Microelectronics on the design and site assessment for what’s set to become India’s first 12-inch wafer facility. The move marks a significant step in India’s efforts to establish domestic semiconductor manufacturing capabilities.
While the companies haven’t disclosed the payment amount or total investment plans, the project represents a strategic push by Tata to enter semiconductor production amid global supply chain realignments.
Separately, Power Semiconductor reported progress in its high-capacity interposer business, with the component passing customer validation. The company plans to begin mass production by year-end, targeting growing demand from AI computing customers.
The project comes as India intensifies efforts to attract semiconductor investments, offering billions in incentives to reduce dependence on imports and establish itself as an alternative manufacturing hub to China.
