The Tata Electronics semiconductor fabrication plant in Dholera, Gujarat, may start production using 90nm chip technology rather than the more advanced 28nm chips originally planned. This change in strategy has been revealed in a report by Bloomberg, pointing to challenges that Tata is encountering while establishing semiconductor manufacturing capabilities from the ground up.

According to sources familiar with the project, the initial focus will be on producing 90nm chips, a technology that is both established and widely used in various industries. Despite being less modern compared to the chips used in contemporary smartphones and AI systems, this technology remains relevant for applications in industrial equipment and automotive electronics.

This alleged adjustment in Tata’s plans marks a deviation from their previous communications. In the annual report for the financial year ending March 2025, chairman N. Chandrasekaran specified an intention to adopt the 28nm manufacturing process initially, followed by advancements to even higher specifications.

Production Timeline and Process Nodes

A spokesperson for Tata Electronics mentioned that the Dholera facility was designed to produce chips across different technology nodes, including 28nm and extending up to 110nm. Initially, the production is set to commence with 55nm and 90nm chips before advancing to the 28nm process, which the company identified as a crucial component of its long-term ambitions.

Eric Tang, a spokesperson from PSMC, commented on the partnership regarding technology nodes, affirming that 28nm is the latest process to be employed. He noted the necessity of a gradual introduction of technology platforms, beginning with more established nodes like 90nm to ensure a smoother transition.

The decision to begin with 90nm chips aligns with a focus on applications that are seen as lower-value yet widely used, such as power management systems and embedded microcontrollers. The gradual shift to 28nm is expected to enhance the overall production capabilities of the plant as it matures.

Understanding the Technology: 90nm vs 28nm

The designation of nanometres (nm) refers to the semiconductor manufacturing process’s technological generation. A smaller number denotes a newer and more sophisticated technology. In essence, smaller chips can accommodate a higher number of transistors in a limited area, resulting in improved speed, energy efficiency, and capability for complex computations.

The 90nm technology, which has been prevalent for nearly two decades, continues to be relevant across various sectors, including automotive and industrial applications where exceptional performance is not the foremost criterion. In contrast, the 28nm technology represents a significant upgrade, used largely in more advanced consumer electronics and communication devices, including smartphones.

While 90nm technology remains functional in specific domains, moving to 28nm would enable Tata Electronics to expand its market presence in high-performance computing and modern digital applications. The initial focus on 90nm chips indicates a strategic choice to build foundational capabilities before tackling more complex and technologically demanding processes.

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