Tata Electronics has started exporting semiconductor chips packaged at its pilot line in Bengaluru-based research and development centre, according to people familiar with the matter. The packaged chips are being shipped to some of Tata Electronics’ partners in Japan, the US, and Europe in limited quantities.

Groundwork for New Chip Packaging Unit and Foundry

This development comes as the Tata group company prepares for its new chip packaging unit at Morigaon in Assam and a $10 billion chip foundry at Dholera in Gujarat. The company is also in the near-final stages for a successful tape-out of semiconductor chips in various nodes, including 28, 40, 55, and 65 nm.

Expanding Customer Base and Strategic Partnerships

Tata Electronics is expanding its customer base and has multiple partners for the packaged chips, which are still in the pilot stage. As reported in April, the company has also signed a strategic deal with Tesla to supply semiconductor chips for its global operations.

Importance of Demonstrating Capabilities

Neil Shah, vice president at Counterpoint Research, emphasized the importance of Tata Group demonstrating its chip designing and manufacturing capabilities to potential customers and partners before the fabs are commissioned over the next 30-36 months. This could be achieved through leveraging Tata Elxsi’s partnerships with Renesas and Lattice Semi and its in-house Sankhya Labs branch.

Tata Group’s Chip Foundry and OSAT Unit

Tata Group’s chip foundry in Dholera, built in alliance with Taiwan’s PowerchipSemiconductor Manufacturing Corporation (PSMC), has a planned capacity of up to 50,000 monthly wafer starts. The facility is expected to produce chips in leading nodes such as 28 nm and 40 nm and some legacy or mature nodes. Apart from the foundry, Tata Group also works on an outsourced assembly and testing (OSAT) unit in Assam.