Tata Group is planning to enter the semiconductor space soon.
It wants to try its hands in the making of electronics, like phones and computer chips.
To fulfill its ambitions it is seeking land close to its electronics manufacturing plant in Krishnagiri, Tamil Nadu.
Expansion or build new unit
They might expand their existing unit that makes parts for phones or create an outsourced semiconductor assembly and test (OSAT) unit.
This will be a planned expansion of Tata Electronics, a division of the Tata Group which was set up as a greenfield venture in 2020.
Acquiring iPhone manufacturing plant
The development comes on the heels of Tata Group’s ongoing acquisition of Taiwanese contract manufacturer Wistron’s iPhone manufacturing plant in Karnataka’s Kolar district.
A source said, “Now that they (Tata Group) are taking over the Wistron plant, they could even be getting into the assembly as well but at the moment we are not sure if they will do more components manufacturing or assembly in Tamil Nadu.”
18K new jobs expected
Tata Electronics, Tata Group’s subsidiary and the Tamil Nadu government had signed a memorandum of understanding in 2021 to establish the phone component manufacturing unit with an investment of Rs 4,684 crore.
The plant is expected to create more than 18,000 jobs.
Home to a third new components manufacturing plant?
If the expansion plans materialize, Tamil Nadu will become home to a third significant manufacturing site for mobile and related components given that both Foxconn and Pegatron from Taiwan have factories there.