India's semiconductor manufacturing journey may soon reach a crucial milestone with Tata Electronics reportedly planning to establish the country's first chip fabrication facility using 90-nanometer (90nm) technology. While this may sound outdated in an era where cutting-edge chips use 3nm or 5nm processes, the decision reflects a strategic and practical approach to building domestic chip manufacturing capabilities.
Understanding Nanometer Technology in Semiconductors
The nanometer measurement in chip manufacturing refers to the size of the transistors on a semiconductor. Smaller numbers indicate more advanced technology—modern smartphones typically use chips built on 5nm or 3nm processes, while the latest high-performance processors can go even smaller. The 90nm technology that Tata Electronics is reportedly considering was mainstream around 2004-2005.
However, dismissing older process nodes as irrelevant would be a fundamental misunderstanding of the semiconductor industry. The vast majority of chips produced globally still use what the industry calls "mature" or "legacy" nodes, ranging from 90nm to 180nm and beyond.
Why 90nm Technology Remains Relevant
The semiconductor industry operates on multiple tiers. While consumer electronics like smartphones and laptops demand the latest technology, numerous other sectors rely heavily on mature process nodes:
- Automotive electronics, including engine control units and safety systems
- Industrial automation and manufacturing equipment
- Power management integrated circuits
- Display drivers for screens and monitors
- Internet of Things devices and sensors
- Consumer appliances and white goods
These applications prioritize reliability, cost-effectiveness, and proven technology over cutting-edge performance. The automotive sector, in particular, has experienced severe chip shortages in recent years precisely because of limited capacity in these mature nodes.
Strategic Advantages for India's Entry
Starting with 90nm technology offers several strategic benefits for India's semiconductor ambitions. Establishing a fabrication plant requires enormous capital investment—often running into billions of dollars—along with specialized expertise, complex supply chains, and years of operational experience.
Beginning with mature nodes allows Indian companies to develop manufacturing expertise, train a skilled workforce, and establish supply chain relationships before attempting to compete in advanced node manufacturing. The technology is well-understood, with higher yields and lower technical risk compared to cutting-edge processes.
Moreover, the global shortage of mature node capacity presents a genuine market opportunity. While Taiwan, South Korea, and China dominate advanced chip manufacturing, there is growing demand for geographically diversified production of legacy chips, especially as governments worldwide prioritize supply chain resilience.
Investment and Infrastructure Requirements
Building a semiconductor fabrication facility requires substantial infrastructure beyond just the manufacturing equipment. Ultra-pure water systems, cleanroom facilities, uninterrupted power supply, skilled technical workforce, and proximity to component suppliers all factor into successful operations.
The Indian government has been actively promoting semiconductor manufacturing through the India Semiconductor Mission, offering significant financial incentives to companies willing to establish fabrication plants. These incentives can cover a substantial portion of the project cost, making such ventures financially viable.
Tata Group's involvement brings credibility and financial strength to India's semiconductor aspirations. As one of India's largest and most respected conglomerates, Tata has the resources and long-term vision necessary for such capital-intensive ventures.
The Broader Context of India's Chip Ambitions
India currently imports virtually all its semiconductor requirements despite being a major consumer of electronic devices. Building domestic manufacturing capacity has become a priority for economic and strategic reasons, particularly given recent global chip shortages that disrupted multiple industries.
The country's strength in chip design and engineering talent provides a foundation to build upon. Many global semiconductor companies already have design centers in India, but manufacturing has remained absent. Establishing fabrication capabilities would complete the semiconductor value chain within the country.
Starting with mature nodes today could position India to gradually move toward more advanced processes as expertise develops, infrastructure strengthens, and the ecosystem matures.
Looking Forward
If Tata Electronics proceeds with this project, it would mark a significant milestone in India's technology self-reliance journey. While 90nm may not make headlines as cutting-edge technology, it addresses real market needs and provides a realistic entry point into semiconductor manufacturing.
The success of this venture could catalyze further investments, create thousands of specialized jobs, and reduce India's dependence on chip imports for numerous applications. Sometimes, the most practical path forward involves walking before attempting to run.
