Tata Electronics and Sumitomo Chemical Partner to Boost India’s Semiconductor Supply Chain

Tata Electronics and Sumitomo Chemical signed a Memorandum of Understanding on Sept. 18, 2026, to explore a partnership for supplying and manufacturing semiconductor materials in India, according to corporate disclosures.

Dholera Fab Supply Agreement and Local Production Plans

Under the agreement, Sumitomo Chemical will explore supplying high-purity chemicals and semiconductor materials to Tata Electronics’ upcoming fabrication facility in Dholera, Gujarat. According to Tata Electronics, the targeted materials include photoresists, functional chemicals, and high-purity substances such as hydrogen peroxide, isopropyl alcohol, ammonia water, and sulfuric acid. Beyond direct supply, the collaboration directs Tata Electronics to support Sumitomo Chemical in investigating the local manufacture of these chemical products within India.

The Dholera plant represents an 11 billion dollar investment by Tata Electronics to build India’s first commercial 12-inch, or 300-millimeter, semiconductor fabrication facility. The site is designed to produce chips for automotive systems, mobile devices, and artificial intelligence applications. Construction at the Gujarat location is progressing rapidly, backed by technology licensing agreements secured through a partnership with Taiwan’s PSMC covering nodes from 28 nanometers to 110 nanometers.

Executive Statements and Bilateral Supply Chain Goals

Corporate leadership from both firms framed the agreement as a step toward supply chain diversification and economic cooperation between India and Japan.

India and Japan maintain a robust partnership and are expanding their semiconductor collaboration by uniting Japanese technical proficiency with India’s rising manufacturing strength to fortify economic security and supply networks, foster skills training and research programs, and forge industry alliances for India’s chip sector.

Semiconductors are essential to the advancement of digital society and industrial competitiveness. Maintaining a steady and sustainable flow of these components relies on the consistent delivery of dependable, high-grade, and high-performance materials subject to strict quality oversight.

Satoshi Honda, Managing Executive Officer, Sumitomo Chemicals

Honda added that the company aims to contribute to a stable supply of materials and a more resilient global supply chain through the arrangement.