The acronym PSMC refers to Powerchip Semiconductor Manufacturing Corporation, a leading Taiwanese foundry, which is a company/institution and a key player in India's push for semiconductor self-reliance. The company's involvement in India began with a strategic shift, opting to scrap a previously announced project in Japan to partner with the Tata Group for a new fabrication unit in India. This decision was solidified following a meeting between Prime Minister Narendra Modi, Tata Group Chairman Natarajan Chandrasekaran, and PSMC Chairman Frank Huang.
The collaboration is a core component of the India Semiconductor Mission (ISM), a government scheme launched in 2021 to build a full-stack chip ecosystem. The mechanism involves a joint venture with Tata Electronics to construct India's first commercial 12-inch wafer fab in Dholera, Gujarat. The project, announced in March 2024, represents an investment of roughly $11 billion. PSMC's role is to provide the process technology, such as the 28nm node, and expertise for design, construction, and talent training, following its "Fab IP" strategy. The facility is expected to achieve a monthly capacity of 50,000 wafers by the end of 2026. The project is heavily subsidized under the ISM, with 50% of the funding from the Central Government and an additional 20% from local governments. This venture connects directly to India's ambition to diversify global supply chains and establish itself as a global semiconductor manufacturing hub.