Did you know the world’s biggest chipmaker, TSMC, declined India’s offer to build a semiconductor plant? According to reports, Taiwan Semiconductor Manufacturing Company (TSMC) has turned down India’s invitation, prompting the country to seek other partners to boost its chip manufacturing dreams.
TSMC says no, India shifts to new partners
TSMC refused the invitation to set up a plant in India, but the reasons remain unclear. The company has also declined similar offers from Qatar and Singapore. Instead, TSMC is expanding factories in the US, Japan, and Germany, where semiconductor supply chains and geopolitical support are stronger.
Following TSMC’s refusal, India partnered with Powerchip Semiconductor Manufacturing Corporation (PSMC) from Taiwan. PSMC signed a deal with Tata Electronics to design and build a wafer manufacturing plant, while Tata will handle future operations.
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India’s growing push for chip manufacturing
India is steadily moving forward with its goal of becoming a chip manufacturing hub. So far, six chip fabrication facilities have been approved. One of the newest is a joint venture between HCL and Foxconn in Uttar Pradesh.
Five more facilities are under advanced construction, including major investments by Tata Electronics and PSMC in Gujarat, aiming to produce up to 50,000 wafers per month by 2026.
Global partnerships boost India’s chip sector
The chip industry in India is gaining strength through international collaborations. For example, Renesas Electronics is setting up an OSAT (Outsourced Semiconductor Assembly and Test) facility in Gujarat.
Similarly, Micron is building an assembly and testing plant. Both are expected to start operations soon, marking India’s growing presence in the global semiconductor landscape.
