Tata Electronics Inks Pact With PSMC, Himax For Display Semiconductors

In the run up to it starting the operations of its semiconductor factory in Gujarat, Tata Electronics has signed a memorandum of understanding (MoU) with Taiwanese semiconductor manufacturers Himax Technologies and Powerchip Semiconductor Manufacturing Corporation (PSMC) to develop display semiconductors.

In a statement, Tata Electronics said that the three parties will collaborate to improve chip design with an eye on catering to their mutual customers. The focus areas would be display chips that can power televisions, smartphones and computer monitors and AI sensing chips.

Further, the said tech would be developed with a focus on “Made in India” requirements. The partnership will encompass designing and manufacturing next-generation solutions that meet global demand while enhancing supply chain resilience.

“By combining Tata Electronics’ capabilities with Himax’s unparalleled expertise in display semiconductors and WiseEyeÔ ultralow power AI sensing and PSMC’s proven manufacturing solutions, we are creating a powerful ecosystem that addresses both domestic and global needs for the display semiconductor market,” Tata Electronics’ CEO and MD Randhir Thakur said.

Prior to this, Tata Electronics partnered with Taiwanese PSMC in September 2024 to build the former’s first semiconductor fab unit in Gujarat’s Dholera.

Under the agreement, PSMC will provide design and construction support to build the AI-enabled greenfield plant in Gujarat. The Taiwanese electronics manufacturing giant will also licence a broad portfolio of technologies and offer engineering support to Tata Electronics’ unit in Gujarat.

Commenting on the latest partnership, PSMC president Martin Chu said, “PSMC’s portfolio of semiconductor fabrication technologies is well-suited to meet the growing ‘Made in India’ requirements. We look forward to this partnership with Tata Electronics and Himax, as it provides a unique opportunity to expand our collective footprint and gain significant share in both the domestic and global display semiconductors and ultralow power AI sensing markets.”

For context, 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 Mn 12-inch equivalent wafers annually. On the other hand, Himax claims to be a global leader in fabless semiconductor solutions and its display chips and timing controllers are widely adopted by industry players to power TVs, PC monitors, laptops, mobile phones, tablets among others.

Besides the aforementioned semiconductor giants, Tata Electronics has also signed multiple MoUs to bolster its chip ambitions. Last year, it partnered with Tokyo Electron Limited (TEL) to build semiconductor equipment infrastructure and with US-based semiconductor manufacturing company Analog Devices to manufacture its products, among others.