Tata Electronics Signs Tripartite Deal with Taiwanese Semiconductor Firms for Gujarat Display Unit.

At the Gujarat Semiconnect summit in Gandhinagar, Tata Electronics signed a Memorandum of Understanding (MoU) with Taiwan-based Himax Technologies, Inc. and Powerchip Semiconductor Manufacturing Corporation (PSMC) to establish a display chip manufacturing facility in Gujarat. The new facility will focus on producing display chips for Himax using PSMC’s advanced semiconductor technology.

The partnership aims to leverage the strengths of Tata Electronics, Himax, and PSMC to develop end-to-end display semiconductor solutions, covering chip design, manufacturing, packaging, and electronics manufacturing services (EMS) for both Indian and global markets. The companies will also work on next-generation solutions to strengthen supply chain resilience and support India's "Made in India" initiative.

Building on Tata Electronics and PSMC’s 2024 agreement to develop semiconductor manufacturing capabilities in Dholera, the latest MoU paves the way for advanced display solutions tailored for domestic and international markets.

Dr. Randhir Thakur, CEO and MD of Tata Electronics, highlighted the strategic importance of the partnership, stating that combining Tata Electronics’ capabilities with Himax’s expertise in display semiconductors and PSMC’s manufacturing solutions will drive innovation in display and ultralow power AI sensing technologies.

Himax CEO Jordan Wu emphasized India’s growing role as a global electronics manufacturing hub, adding that the collaboration would enhance supply chain resilience while supporting India's semiconductor ambitions. PSMC President Martin Chu noted that PSMC’s semiconductor fabrication technologies align with India's “Made in India” goals and will help expand market share in display semiconductors and ultralow power AI sensing.

Fiscal Support for Semiconductor Fab and New EMS Investment

During the event, a fiscal support agreement (FSA) was signed between the India Semiconductor Mission (ISM) and Tata Electronics to provide financial assistance for a semiconductor fab unit in Dholera, with an investment of ₹91,526 crore. Additionally, Tata Electronics and IIT Gandhinagar signed an MoU for semiconductor skill development initiatives.

In a separate development, Tata Electronics signed an MoU with Taiwan Surface Mounting Technology (TSMT) to establish a new Electronics Manufacturing Service (EMS) unit in Gujarat with an investment of over ₹500 crore, creating approximately 1,000 new jobs.

HBL