Tata Group will is set begin the manufacturing of semiconductors in India in a few years, as confirmed by Tata Sons chairman Natarajan Chandrasekaran
In 2021, there was news that the salt-to-steel conglomerate was in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit.
Tata Group To Start Manufacturing Semiconductors In A Few Years
The Tata Group’s move may help India become a significant player in the world’s chip supply chains, which have not yet fully recovered from COVID-related difficulties.
Chandrasekaran stated that the corporation intends to start new operations in developing industries including electric cars in an interview.
Chandrasekaran also talked about the electronic components company that was founded in 2020, “We have created Tata Electronics, under which we are going to set up semiconductor assembly testing business. We will have discussions with multiple players.” he also hinted at the possibility of collaboration with existing chip manufacturers.
Chandrasekharan has previously stated the group’s intent to enter the semiconductor manufacturing industry.
Chandrasekaran estimated the market opportunity for high-tech electronics manufacturing at $1 trillion and said Tata Group has already established a company to take advantage of the opportunity.
Tata To Set up Assembly and Testing Unit in Three Southern States
We had earlier reported that Tata is talking to the southern states of Tamil Nadu, Karnataka, and Telangana for setting up a semiconductor assembly and testing unit.
The group was scouting for land for the outsourced semiconductor assembly and test (OSAT) plant. An OSAT plant package assembles and tests foundry-made silicon wafers, turning them into finished semiconductor chips. Potential clients of Tata’s OSAT business include companies such as Intel, Advanced Micro Devices (AMD), and STMicroelectronics.
Tata’s push will strengthen Indian Prime Minister Narendra Modi’s ‘Make in India’ drive for electronics manufacturing. This initiative has already helped turn the South Asian nation into the world’s second-biggest maker of smartphones.
Tata group Chairman N. Chandrasekaran had also shown an inclination to enter into the hardware business. “The Tata group, which controls India’s top software services exporter Tata Consultancy Services and has interests in everything from autos to aviation, plans to invest in high-end electronics and digital businesses,” he had said earlier.
As per the sources, the Rs. 2000 crore factory is expected to start operations late next year and could employ up to 4,000 workers. Availability of skilled labor at the right cost was key to the long-term viability of the project.
