Tata Semiconductor Unit Secures $735 Million in Loans: Report

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Tata Semiconductor Manufacturing Pvt. Ltd. has raised ₹6,835 crore, or about $735 million, from five foreign banks to fund its ₹91,000 crore semiconductor fabrication plant in Gujarat, Mint reported, citing company filings and people aware of the matter.

The loan agreement, signed on 5 February, requires the Tata group to retain a 51% stake in the unit, continue using the Tata brand and maintain at least ₹30 crore in equity for every ₹70 crore borrowed.

The Gujarat government has leased 163.5 acres of land to Tata Electronics for the project, with the asset recorded at zero value in official filings due to its undeveloped status, the report said.

Despite that, the land has been pledged as collateral, with lenders relying primarily on Tata’s credit profile rather than the underlying asset, the report added.

The funding was raised through branches in Gujarat International Finance Tec-City, helping secure relatively lower borrowing costs.

HSBC, MUFG, First Abu Dhabi Bank, DBS and ANZ were among the lenders, the report said.

Tata Electronics has invested about ₹690 crore in the project since November 2023.

The facility, being developed with Taiwan’s Powerchip Semiconductor Manufacturing Corp., is expected to begin trial production in the first half of 2027 with an initial capacity of 50,000 wafer starts per month.

The project is a key test of India’s push to build domestic chip manufacturing, with execution during the trial phase seen as a critical milestone.