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Tata-PSMC partnership advances semiconductor push, TSMC declines India proposal

Wednesday, 21 May 2025
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Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has reportedly declined an invitation from the Indian government to establish a semiconductor manufacturing plant in the country, according to a report from Digitimes. 

Following TSMC’s rejection, India secured a deal with Powerchip Semiconductor Manufacturing Corporation (PSMC), which partnered with Tata Electronics. Under the agreement, PSMC will handle the design, construction, and employee training for a new chip fab, while Tata Group will oversee operations. India remains committed to becoming a global semiconductor hub, with six fabrication facilities approved so far. 

This includes a major Tata-PSMC project in Gujarat aiming to produce 50,000 wafers per month by 2026. Other significant developments include HCL-Foxconn’s joint venture in Uttar Pradesh, Renesas Electronics’ OSAT facility, and Micron’s upcoming assembly and testing unit.  

TSMC has also turned down similar proposals from Qatar and Singapore. Instead, TSMC continues to expand in countries with established semiconductor ecosystems like the U.S., Japan, and Germany.

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