Tata Electronics onboards Malaysian cleanroom specialist IAQ Group for Dholera fab

Tata Electronics has joined hands with Malaysian cleanroom specialists IAQ Group for its upcoming 300 mm (12 inch) semiconductor fab in Dholera, people aware of the developments told ET. This marks another crucial partnership the company has sealed as India's first fab gradually comes to life, they said.

A cleanroom is a necessity in semiconductor fab to minimize contaminants that can adversely affect the precision and functionality of semiconductor devices.

"IAQ is widely known for its expertise and has worked with leading companies globally including Texas Instruments and Infineon on their cleanrooms," one person cited above said. "They will design and install the cleanroom on a turnkey basis. This will be hugely beneficial for Tata Electronics as the cleanroom is arguably one of the most important aspects of any fab facility and one cannot afford to slip up there."


Queries sent to Tata Electronics and IAQ Group remained unanswered as of press time Wednesday.

Founded in 1994, the IAQ Group is a leading Malaysia-based total facility solutions provider with technical excellence in hi-tech facility solutions.

For Tata Electronics, partnering with a firm like IAQ ensures that the large cleanroom at their ambitious $11 billion project is built out to the stringent standards needed for such facilities.

"As a recognized cleanroom specialist, IAQ takes the lead in constructing facilities that not only meet but exceed industry standards, ensuring an environment that aligns seamlessly with the demands of cutting-edge semiconductor technology," IAQ Group said on its website.

Ashwath Rao, senior analyst at Counterpoint Research, said the partnership comes at a time when global EPC (engineering, procurement, and construction) cleanroom capacity is currently stretched due to AI-driven fab expansion worldwide.

"Cleanroom readiness is the critical bottleneck for tool installation and fab ramp-up," he explained. "Tata’s first fab will need speed, execution certainty, and fast commissioning. Tata’s immediate priority is not just building manufacturing capability but also schedule certainty for tool move-in and ramp-up. Regional specialists like IAQ will help de-risk the cleanroom readiness bottleneck that sits on the critical path to production."

He added this sort of partnership makes it more execution-friendly for regional EPC players like IAQ, strategically well-aligned for Tata’s first fab phase.

"In fact, many successful semiconductor projects in Asia have relied on regional engineering specialists as any delay in the set-up of cleanroom facilities and every downstream activity gets delayed," Rao said.

He added that India introduces a 'first-generation semiconductor ecosystem challenge' where cleanroom execution must be built alongside evolving supply chains, talent depth, and utility infrastructure. Unlike Malaysia or Taiwan, there is no default playbook that already works locally, he said.

"IAQ will need to manage integration complexity with global tool vendors while adapting to higher environmental variability and compressed timelines," Rao said. "IAQ’s challenge will be executing and maintaining semiconductor-grade cleanrooms in a rapidly evolving, first-generation fab ecosystem with limited local precedents and high global synchronization pressure."

The facility will manufacture semiconductors for a variety of applications across automotive, mobile devices, artificial intelligence (AI), and other key segments to serve customers globally.

Tata Electronics has strategically partnered key global customers and ecosystem companies, starting with PSMC (Powerchip Semiconductor Manufacturing Corporation, Taiwan) gaining access to a broad technology portfolio including 28nm, 40nm, 55nm, 90nm, and 110nm.

Construction of the plant is progressing rapidly, and the company has announced a slew of strategic partnerships since. Recently, Tata Electronics inked pacts with equipment maker ASML as well as American chipmaker Intel to manufacture and package its products for local markets.