TAIPEI (Taiwan News) — Powerchip Semiconductor Manufacturing Corporation (PSMC) announced it is partnering with Tata Electronics to build India’s first 12-inch wafer fab in Dholera, Gujarat, according to a press release on Thursday (Feb. 29).

The move comes as India attempts to develop its chipmaking industry. The South Asian country expects its semiconductor market to be worth US$63 billion (NT$1.99 trillion) by 2026 but has yet to establish its own fab, per Reuters.

PSMC CEO Frank Huang (黃崇仁) said that India possesses the world’s largest population and a vast domestic market, CNA reported. “At this critical moment of the global restructuring of high-tech supply chain, the cooperation between PSMC and Tata Sons Group is indeed timely,” the founder said.

Tata Sons Group Chair Natarajan Chandrasekaran said that the group has played a pioneering role in many fields in India.

Tata Electronics CEO Randhir Thakur said cooperation with PSMC means Tata Electronics can develop synergies and reach more companies. “On top of that, Tata Electronics will also achieve the goal of Make in India in order to meet the needs of its international customers as well as the needs of India’s rapidly growing domestic market and to enhance the resilience of the global supply chain,” he added.

Construction of the fab will begin this year. The new fab will receive an investment of US$3 billion and is expected to create 20,000 jobs after completion, per CNBC.