Tata Electronics signs pact with Tokyo Electron to buy semicon equipment

Tata Electronics has signed a memorandum of understanding with Tokyo Electron to buy equipment and services for its under-construction chip units in Gujarat and Assam.

Under the agreement, Tata Electronics and TEL will also focus on training Tata Electronics' workforce on TEL equipment and supporting ongoing improvement and research and development initiatives.

"Tata Electronics...Signed a memorandum of understanding with Tokyo Electron Limited (TEL), a leading global supplier of semiconductor equipment and services. The two companies will collaborate to accelerate semiconductor equipment infrastructure for India's first Fab being built by Tata Electronics in Dholera, Gujarat, and for its assembly and test facility in Jagiroad, Assam," Tata Electronics said on Monday.

Tata Electronics is building India's first Fab in Dholera, Gujarat, with a total investment of Rs 91,000 crore and assembly and testing of semiconductor chips with investment of Rs 27,000 crores in Jagiroad, Assam.

Together, these facilities will produce semiconductor chips for applications across automotive, mobile devices, artificial intelligence (AI), and other key segments to serve customers globally, the statement said.

"TEL has a history of working closely with its customers, and its expertise in the semiconductor equipment space will help build a dynamic ecosystem to support the timely execution of bringing up our Fab and advanced packaging factories," Tata Electronics managing director and CEO, Randhir Thakur said.

TEL will explore opportunities to leverage India's talent to establish an engineering service in India to support its global product development, the statement said.

"This strategic collaboration spans both front-end fabrication and back-end packaging technologies, highlighting our commitment to delivering exceptional support and value to Tata Electronics. By leveraging our collective strengths, we aim to accelerate development and drive innovation across multiple technology nodes," TEL, President and CEO, Toshiki Kawai said.