Tata Electronics and Merck Join Forces to Establish Semiconductor Plant

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04 Sep 2025
4 min read

News Synopsis

Tata Electronics has signed a strategic partnership with Merck Electronics to source advanced semiconductor materials and services for its upcoming chip manufacturing plant in Dholera, Gujarat. This collaboration aims to strengthen India’s semiconductor ecosystem and accelerate the development of high-tech fabrication infrastructure.

MoU Signed at Semicon India 2025

The memorandum of understanding (MoU) between Tata Electronics and Merck was signed at Semicon India 2025 in the presence of Union Minister Ashwini Vaishnaw. The pact marks one of the first major collaborations between a global materials solutions provider and a leading Indian semiconductor manufacturer.

According to Tata Electronics, the agreement focuses on:

  • Developing capabilities in semiconductor materials

  • Building semiconductor fabrication infrastructure

  • Enhancing specialty chemical and gas distribution in India

Merck’s Role in the Partnership

Merck will provide its full suite of products and services for Tata Electronics’ Dholera Fab, including:

  • High-purity electronic materials

  • Advanced gas and chemical delivery systems

  • Turnkey fab infrastructure services

  • Material Intelligence solutions powered by AI

The partnership also includes sharing best practices in safety and manufacturing excellence, as well as providing access to Athinia, Merck’s secure data analytics platform for collaboration across the semiconductor industry.

Localisation and Ecosystem Development

The collaboration goes beyond technology supply. It includes plans for:

  • Localised warehousing and raw material supply chain development

  • Talent cultivation and skill development

  • Establishing industry processes and standards in India

According to Randhir Thakur, CEO of Tata Electronics, leveraging Merck’s global experience in chemical safety, process optimization, and digital tools will help build a resilient ecosystem and ensure timely execution of the Dholera Fab.

About Tata Electronics’ Dholera Fab

Tata Electronics is investing Rs 91,000 crore (approximately USD 11 billion) to build India’s first semiconductor Fab in Dholera. The plant will manufacture chips for key sectors including:

  • Automotive

  • Mobile devices

  • Artificial intelligence (AI) applications

  • Other global markets

This Fab aims to position India as a key player in the semiconductor supply chain and meet the rising demand for chips in various technology segments.

Merck’s Strategic Perspective

Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics, stated that the partnership aligns with Merck’s strategy to support growth markets through safety, precision, and innovation. The collaboration aims to build a future-ready materials ecosystem that strengthens India’s semiconductor ambitions.

Collaboration with C-DAC for Indigenous Solutions

In addition to Merck, Tata Electronics has signed an MoU with the Centre for Development of Advanced Computing (C-DAC). This partnership focuses on:

  • Advancing indigenous electronics and semiconductor solutions

  • Developing a Design IP ecosystem in India

  • Facilitating Fab, OSAT, and design service solutions for the Indian semiconductor ecosystem

The collaboration seeks to leverage Tata Electronics’ Fab technology portfolio to strengthen India’s semiconductor design capabilities and intellectual property development.

Conclusion

The partnerships with Merck and C-DAC highlight Tata Electronics’ commitment to creating a resilient and future-ready semiconductor ecosystem in India. By combining advanced materials, fabrication expertise, and indigenous design capabilities, the Dholera Fab is poised to boost India’s presence in the global semiconductor industry while fostering innovation, talent, and sustainable infrastructure.

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