Tata Electronics to set up display chip manufacturing unit in Gujarat

Tata Electronics will set up a display chip manufacturing unit in Gujarat in partnership with Taiwan-based PSMC and Himax Technologies, a top official of the company said on Wednesday.

Speaking at IESA Vision Summit, Tata Electronics CEO Randhir Thakur announced signing of an agreement with the Gujarat government for the plant.

Display chips are widely used in products like television, mobile phone screen, camera image sensors, LEDs, OLEDs etc.

Vedanta Group had also proposed to set up a display fab in Gujarat but the project has not received government approval yet.

With its foray in display manufacturing, Tata Electronics will have presence in all top three semiconductor manufacturing segments.

Under the project, Tata Electronics, Himax, and PSMC aim to leverage their respective strengths to deliver comprehensive, end-to-end display semiconductor solutions for their mutual customers, from chip design to chip manufacturing and packaging, as well as electronics manufacturing services (EMS) to both the Indian and global markets.

Tata Electronics is already in process to set up a semiconductor fabrication plant in Gujarat with an investment of around Rs 91,000 crore with PSMC as its technology partner.

Powerchip Semiconductor Manufacturing Corporation (PSMC) is the world's seventh-largest pure-play foundry, with four 12-inch and two 8-inch fabs in Taiwan, capable of producing over 2.1 million 12-inch equivalent wafers annually. Tata is also setting up a chip assembly plant in Assam with an investment of Rs 27,000 crore.