KUALA LUMPUR (Sept 21): Kelington Group Bhd (KL:KGB) has entered into a collaboration with electronics and semiconductor manufacturer Tata Electronics to advance the development of the latter’s semiconductor fabrication facility (Fab) in Dholera, Gujarat. 

Kelington said under the agreement dated Sept 18, the group will support the Tata Group’s unit in infrastructure and system deployment for the facility.

“The partnership will also explore the development of local talent and advanced design and build engineering capabilities in India. 

“The alliance reflects the shared commitment of both companies to supporting India’s growing semiconductor manufacturing capabilities and will be a key enabler for the timely execution of the Dholera Fab project,” the group said in a press statement on Monday.

The 12-inch (300 mm) Fab is designed to produce chips for a wide array of applications, including automotive, mobile devices, and artificial intelligence for both domestic and international markets.

Specifically, the engineering services and industrial gases provider will deliver critical infrastructure and process systems required for silicon wafer production, enabling the facility to accelerate its operational readiness.

“The proposed partnership for Tata Electronics’ Dholera facility has been envisioned to support the exacting requirements of semiconductor manufacturing. We are pleased to partner with Tata Electronics on this landmark project,” said Kelington CEO Lim Seng Chuan.

“With our shared commitment to excellence in execution, this alliance will support the development of critical infrastructure for the Dholera facility and contribute to the growth of India’s semiconductor industry,” he added.

Tata Electronics CEO and managing director Dr Randhir Thakur said: “Building a semiconductor Fab requires collaboration across an extensive ecosystem of partners with deep technical expertise. Tool hook-up is a critical element in establishing a reliable, efficient, and high-performance Fab environment, enabling seamless integration of sophisticated equipment and supporting operational excellence from day one”. 

The Dholera Fab is a key component of Tata Electronics’ semiconductor manufacturing strategy, backed by a planned investment of US$11 billion, or approximately RM45 billion.

Kelington’s shares were down 19 sen or 2.17% at RM8.56 after noon break on Monday, giving the group a market capitalisation of RM7.6 billion.