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Tata Group to foray into semiconductor meeting enterprise | Autocar India

Written by Rashmi

Revealed On Nov 26, 2021 07:24:00 PM

Tata Group is in talks with Tamil Nadu, Karnataka and Telangana as it’s scouting potential land for establishing the manufacturing unit.

Whereas the continuing semiconductor disaster has crippled the automotive trade, the Tata Group is seeking to arrange its personal semiconductor meeting unit in India. The Tata Group is reportedly in talks with three states to take a position as much as $300 million for establishing a semiconductor meeting and take a look at unit, reported Reuters, as per two sources accustomed to the matter.

  • Tata Group to spend money on semiconductor meeting and take a look at unit
  • The Group is at present scouting for land in Tamil Nadu, Karnataka and Telangana
  • Venue prone to be finalised by subsequent month

The Tata Group is alleged to be in talks with three southern states – Tamil Nadu, Karnataka and Telangana – and is scouting for land for establishing the outsourced semiconductor meeting and take a look at (OSAT) plant. An OSAT plant sources silicon wafers from semiconductor foundries, packages, assembles and exams them, lastly turning them into completed semiconductor chips.

The corporate has already checked out some potential places for the manufacturing unit and the venue will seemingly be finalised by subsequent month, mentioned one of many sources, however have declined to be recognized because the matter shouldn’t be public but.

The Tata Group had beforehand expressed its curiosity in coming into the semiconductor enterprise, however that is the primary time that information concerning the group’s foray into this sector and its scale has been reported.

“Whereas they [Tata] are very robust on the software program facet of issues… {hardware} is one thing they wish to add to their portfolio, which may be very essential for long-term progress,” mentioned one of many sources.

The Tata Group has plans of investing in high-tech electronics and digital enterprise and its push into the semiconductor trade will ahead the ‘Make in India’ initiative for electronics manufacturing. Potential shoppers of Tata’s OSAT enterprise embody corporations akin to Intel, AMD and STMicroelectronics.

The manufacturing unit is anticipated to be operational by late subsequent yr and will make use of as much as 4,000 staff, mentioned one of many sources, additionally highlighting that availability of expert labour on the proper price can be key for the long-term viability of the undertaking.

“As soon as Tata begins, the ecosystem will come round… So it’s extremely essential to seek out the precise place from a labour standpoint,” the supply mentioned.

Supply: Reuters

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Rashmi