Tata Electronics is constructing two more fabrication units, or fabs, in Gujarat, India. This enlargement is a component of the company's comprehensive plan to build a local chip manufacturing ecosystem to meet growing global demand and solidify its position in the worldwide semiconductor industry.

The first fab is currently being built at the Dholera Special Investment Region, where Tata Electronics began construction in March of this year. The factory will specialize in producing chips for power management circuits, display drivers, microcontrollers, and high-performance computing logic. These chips will be crucial in industries like automotive, data storage, wireless communication, artificial intelligence (AI), and other areas. The initial factory is projected to produce as many as 50,000 wafers per month when operating at full capacity.

The initial stage of the project, worth Rs 91,000 crore, is being worked on in collaboration with Powerchip Semiconductor Manufacturing Corporation (PSMC) from Taiwan. The first fab is set to start production by 2026.

Plans are in place to start building the second and third fabs in the next five to seven years, with similar size expectations as the first fab. Yet, it remains uncertain if Tata Electronics will collaborate with PSMC for the next two fab projects. The report stated that the partnerships for the second and third fab units, along with the technology and infrastructure specifications, will be based on the global semiconductor market conditions and needs at that particular time.