Tata Will Invest Rs 2000 Cr To Assemble Semiconductors; Talks On With These 3 States

Semiconductors have been in news for quite a while now and for all the wrong reasons. As people all over the world, huddled in their own homes after the outbreak of the virus, demand for all semiconductor-driven electronics went off the roof. But the sporadic lockdowns all over the world ruptured the supply chains all over the world. The waiting period are ranging from 9 weeks to 22 weeks.

It seems like the Tata group has had enough with this semiconductor shortage and has decided to take the matter into their own hands.

Tata to set up Semiconductor Assembly unit in India

According to sources, the Tata group is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit. This is in line with part of the conglomerate’s push into high-tech manufacturing. Tata is talking to the southern states of Tamil Nadu, Karnataka, and Telangana.

The group is still 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.

According to sources who are close to the discussions, a venue was likely to be finalized by next month.

Push for ‘Make in India’, 4000 jobs to be created

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.

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