Tata Group Shifts Focus to Mature 90nm Technology for Landmark Semiconductor Debut

Tata Group Shifts Focus to Mature 90nm Technology for Landmark Semiconductor Debut​

Tata Electronics Pvt. is recalibrating its entry into the semiconductor space by preparing to manufacture India’s first domestic chips using significantly older technology than initially anticipated.

The conglomerate's tech arm plans to establish a large-scale production plant in Dholera, Gujarat, primarily utilizing 90-nanometer process technology. This marks a departure from the more advanced 28nm node originally highlighted in the group’s annual report for the period ended March 2025.

While 90nm is considered a mature technology used mainly in industrial applications and automotive sectors, it faces risks of becoming obsolete as the industry evolves. The shift highlights the substantial hurdles India faces in attempting to build a sovereign chip manufacturing ecosystem from the ground up.

Strategic Pivot Toward Mature Nodes for Market Entry​

Sources familiar with private deliberations suggest that Tata's public ambitions may have over-projected near-term capabilities. The company is working in partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corp. (PSMC) to navigate this complex manufacturing debut.

A spokesperson for Tata Electronics clarified that the Dholera facility will manufacture chips ranging from 28nm to 110nm. The official stated the plan was always to begin with 55nm and 90nm, while emphasizing that 28nm remains a key part of their ultimate offering.

PSMC spokesperson Eric Tang noted that it is standard practice for technology platforms to be introduced gradually, starting with more mature nodes before advancing. This gradual approach is expected to help the group navigate the steep learning curve associated with high-precision chip production.

Government Backing and Massive Infrastructure Investment​

The Indian government is actively leveraging the Tata Group's manufacturing expertise to reduce import dependence and secure a global seat at the semiconductor table. The company is currently spending tens of billions of dollars to develop fabrication and assembly plants despite hurdles in infrastructure and skilled talent.

On Wednesday, New Delhi approved ₹1.28 trillion ($13.3 billion) in new state aid for chip design, manufacturing equipment, and supply-chain development. This fund will apply only to future, incremental investments rather than retroactively offsetting previously committed spending.

This new incentive package complements an earlier $10 billion aid package announced in 2021. That initial plan offered to cover half the cost of setting up semiconductor projects, including Tata's Dholera fab, which carries a planned capital expenditure of $10.7 billion.

Navigating Global Competition and Production Timelines​

India faces stiff competition from industry leaders in Taiwan and South Korea, who hold decades-long head starts. For instance, Taiwan Semiconductor Manufacturing Co. began 2nm volume production last year and generates the majority of its revenue from nodes smaller than 5nm.

While 28nm is a commercially vital mature node used in smartphones and consumer electronics, starting with 90nm suggests Tata is initially targeting a less lucrative segment of the market. This may be a strategic move to ensure operational stability before attempting high-end production.

The timeline for these projects has also shifted. While the group previously targeted commercial production by the end of 2026, Technology Minister Ashwini Vaishnaw informed reporters on Wednesday that the Dholera plant is now expected to commence commercial operations in mid-2028.