Tata Electronics announced the finalization of the Definitive Agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) for building India's first AI-enabled greenfield fab in Gujarat with design and construction assistance from the Taiwanese company.

Furthermore, PSMC will also provide engineering assistance and license a wide range of technologies to effectively transfer these technologies to the Gujarat fab. The fab will have a production capacity of up to 50,000 wafers per month and will feature next-generation factory automation capabilities that utilize data analytics and machine learning to improve efficiency.

The company announced that the upcoming semiconductor facility will produce chips for power management IC, display drivers, microcontrollers (MCU), and high-performance computing logic, meeting the increasing demand in AI technologies, automotive, computing, data storage, and wireless communication markets.

"This pioneering agreement between Tata Electronics and PSMC will bring to India a portfolio of cutting-edge semiconductor technologies, advanced skill set and talent, and a network of semiconductor manufacturing suppliers and ecosystem partners, setting the foundation for an indigenous semiconductor ecosystem in India," the company said in a statement.

Moreover, this was labeled as a crucial moment in establishing India as a reliable partner in the worldwide semiconductor supply chain and expediting the nation's progress towards becoming a global semiconductor manufacturing center.