Tata's first semiconductor plant in Dholera may rely on 90nm and not 28nm chip tech, report says

Published 17 July 2026 · tech

Tata Electronics may begin making chips in India using older technology than it had originally planned. The company, which is building India's first large-scale semiconductor

Tata Electronics may begin making chips in India using older technology than it had originally planned. The company, which is building India's first large-scale semiconductor fabrication plant in Dholera, Gujarat, is reportedly preparing to produce 90nm chips first instead of the more advanced 28nm technology it had earlier highlighted. According to a Bloomberg report, the decision reflects the practical challenges the company is facing in setting up semiconductor manufacturing from scratch. Read Full Story The report, citing people familiar with the matter, reveals that Tata's Dholera plant will initially manufacture 90nm chips. This is an older and well-established chipmaking technology that is commonly used in industrial equipment, automotive electronics, power management systems and microcontrollers. While 90nm chips are still widely used, they are far less advanced than the chips found in modern smartphones, AI processors and high-performance computing systems.

If the report is accurate, it would mark a shift from what Tata Sons had outlined earlier. In its annual report for the financial year ended March 2025, chairman N. Chandrasekaran had said the group would begin its semiconductor journey with the 28nm process before moving to even more advanced chip technologies. However, Tata Electronics has now reportedly changed its plans. A company spokesperson told Bloomberg that the Dholera plant has always been intended to manufacture chips across multiple process nodes, ranging from 28nm to 110nm. According to the spokesperson, production will begin with 55nm and 90nm chips before expanding to 28nm, which the company described as a "key part" of its long-term plans. In an emailed response to Bloomberg, PSMC spokesperson Eric Tang said the partnership covers several technology nodes, with 28nm being the most advanced process.

“It is common that the introduction of the technology platform will be gradual, starting with more mature nodes,” Tang said. What is the difference between 90nm and 28nm chips? The nanometre (nm) number refers to the generation of chip manufacturing technology. In simple terms, the smaller the number, the newer and more advanced the chip. Smaller chips can fit more transistors into the same space, making them faster, more power-efficient and capable of handling more complex tasks. Here a 90nm chip is an older, well-established technology that has been in use for nearly two decades. It is still widely used in cars, industrial machines, networking equipment, sensors and household appliances, where top-end performance is not a priority. By comparison, 28nm is a newer and more capable technology.