This move by the multinational conglomerate has the potential to make India a key part of the global chip supply chain, which is yet to recover from COVID-related disruptions. Tata Group will begin producing semiconductors in India within a few years, according to Tata Sons chairman Natarajan Chandrasekaran in an interview with Nikkei Asia on December 8.
Chandrasekaran told the Tokyo publication that the company intends to launch new businesses in emerging fields such as electric vehicles. “We have created Tata Electronics, under which we are going to set up semiconductor assembly testing business,” Chandrasekaran told Nikkei Asia, referring to the group’s 2020 electronic components manufacturer. “We will have discussions with multiple players,” he added, hinting at collaborations with existing chip manufacturers.
Huge Market Opportunity Exists
Chandrasekharan has previously stated that the group is willing to venture into semiconductor manufacturing. Chandrasekaran estimated the market opportunity for high-tech electronics manufacturing at $1 trillion and stated that Tata Group had already established a business to capitalise on the opportunity.
