Tata Electronics and Merck Sign MoU to Strengthen India’s Semiconductor Capabilities

Tata Electronics Private Limited and Merck have entered into a strategic Memorandum of Understanding (MoU) to bolster India’s semiconductor ecosystem. The partnership focuses on advancing semiconductor materials, fabrication infrastructure, and the supply of specialty chemicals and gases, contributing to the India Semiconductor Mission and supporting the nation’s push toward self-reliance in chip manufacturing.

Strategic Collaboration for Semiconductor Advancement

The MoU, signed on September 2, marks a significant step in developing indigenous semiconductor capabilities in India. Through this partnership, Tata Electronics will leverage Merck’s expertise to enhance semiconductor materials, fabrication processes, and industry standards.

The collaboration aims to strengthen capabilities in high-purity electronic materials, advanced chemical and gas delivery systems, and turnkey fab infrastructure services, enabling Tata Electronics to accelerate its semiconductor production initiatives.

Merck’s Role and Contributions

Merck will provide Tata Electronics with its full suite of products and services, including:

• High-purity electronic materials essential for advanced semiconductor manufacturing

• Advanced gas and chemical delivery systems for safe and efficient fab operations

• Turnkey fabrication infrastructure services for Tata Electronics’ Dholera Fab

• Material Intelligence solutions powered by AI, offering predictive insights and process optimization

Additionally, Merck will share best practices in safety, production excellence, and operational efficiency. The partnership also grants access to Athinia, a secure data analytics platform that facilitates collaboration and data-driven decision-making in the semiconductor industry.

Focus on Localized Development and Talent Cultivation

The MoU emphasizes building a resilient and localized semiconductor ecosystem in India. Key initiatives include:

• Localized warehousing for essential semiconductor materials

• Development of a raw material supply chain across India

• Talent cultivation programs to train the next generation of semiconductor professionals

• Establishment of industry standards and processes to enhance production quality and safety

These measures aim to accelerate India’s progress toward a self-reliant semiconductor industry while ensuring sustainable growth.

Tata Electronics’ Investment in Dholera Fab

Tata Electronics is investing ₹91,000 crore ($11 billion) in its first semiconductor Fab in Dholera, Gujarat. The facility will produce chips for diverse applications, including:

• Automotive electronics

• Mobile devices

• Artificial Intelligence (AI) applications

• Other critical technology segments serving global clients

The collaboration with Merck will help ensure world-class manufacturing practices, operational safety, and industry-leading quality standards at the Dholera Fab.

Industry Perspectives: Leadership Insights

Dr Randhir Thakur, CEO and MD of Tata Electronics, highlighted that the partnership with Merck brings global expertise in advanced materials and a shared commitment to safety and manufacturing excellence. He noted that the collaboration would help build a resilient ecosystem, accelerate Fab operations in Dholera, and establish benchmarks in quality, innovation, and safety for the global semiconductor industry.

Meanwhile, Dr Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics, expressed pride in being part of India’s semiconductor journey. He stated that the partnership aligns with Merck’s strategy to support key growth markets, emphasizing safety, precision, and innovation to create a robust materials ecosystem for India’s semiconductor ambitions.

Contribution to India Semiconductor Mission

This strategic collaboration underscores both companies’ commitment to advancing India’s semiconductor self-reliance goals. By combining Tata Electronics’ manufacturing capabilities with Merck’s expertise in materials and AI-driven solutions, the partnership supports the broader objectives of the India Semiconductor Mission (ISM) and accelerates the development of a sustainable, globally competitive semiconductor ecosystem.

Conclusion

The MoU between Tata Electronics and Merck represents a milestone in India’s semiconductor journey. By leveraging Merck’s technological expertise and Tata Electronics’ manufacturing capabilities, the partnership aims to strengthen India’s semiconductor infrastructure, cultivate skilled talent, and ensure global-standard production practices. The Dholera Fab project, backed by this collaboration, is poised to position India as a key player in the global semiconductor industry.