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India is set to produce its first domestic chips by 2026, as Tata Consultancy Services has decided to collaborate with Tata Electronics Pvt. Ltd to spearhead the initiative. 

Quoting Sreenivasa Chakravarti, vice-president and global head of TCS's digital engineering division, the Mint reported that TCS, which specialises in semiconductor design and engineering, has multiple points of engagement in the manufacturing process, where Tata Electronics will lead the charge. 

India to Get Three Semiconductor Facilities

The report noted that India's Semiconductor Mission approved the establishment of three semiconductor manufacturing facilities in February to advance the growth of this sector. 

The Mint added that the first is an $11-billion greenfield chip manufacturing plant in Dholera Gujarat. Tata Electronics is leading the development of this facility, and it will have an initial output capacity of 50,000 wafers per month.

The second plant in Assam, valued at $3.26 billion is also spearheaded by Tata Electronics, and it will concentrate on chip assembly and testing. 

Tata Electronics is planning to produce the first chips from the Assam facility by late 2025 or early 2026. These chips will concentrate on industries such as automotive, electronics, power, consumer goods, and healthcare.

Indian Semiconductor Industry to Get a Boost with TCS' Expertise

The Mint, quoting Omkar Tanksale, a senior IT research analyst at Axis Securities, said that the experience of TCS in the semiconductor industry to help accelerate the sector in India. 

He also added that TCS is the first Indian technology services firm to establish a robust expertise in semiconductor engineering and services.

The report noted that TCS has a significant presence in semiconductor design, engineering, and software development for semiconductor applications.

However, unlike other firms like HCL Technologies, which recently announced a joint venture with China's Foxconn to establish a chip testing facility, TCS has not yet entered the chip manufacturing sector.