Tata Group Prepares To Enter Semiconductor Manufacturing In India

India’s Tata Group plans to invest heavily in semiconductor manufacturing in the coming years — aiming for a $1 trillion hi-tech electronics manufacturing market.

The move follows the Tata Group’s entry into the 5G telecom equipment manufacturing sector. Tata purchased a majority share in Tejas Networks, which manufactures telecom equipment. Tata Group will reportedly use a new factory in Tamil Nadu to manufacture chipsets.

Tata Sons Chairman Natarajan Chandrasekaran is confident that India should thus become an important manufacturer in the semiconductor industry and will bring change in the global supply chain, which is currently dependent on China. He also said that it is expected that 30 million new employment opportunities can be provided.

However, it remains questionable whether they will go this route all alone because they have no real experience. According to some media reports, the first projects will probably result in a partnership with established companies in the industry. Tata announced in June this year a partnership with Renesas for semiconductor design and the resulting development.

In 2021, India was expected to have 1.4 billion people. Because of its vast population, the market is seen as one of the most significant for the future, alongside China. The Indian government is planning to come up with an incentive plan for semiconductor manufacturing units within 6 months. About $1 billion for every company that sets up a chip manufacturing unit.

The Tata Group employs about a million people across the globe in approximately 100 organisations. It is well-known for Tata Motors, which includes Land Rover and Jaguar, but the majority of the conglomerate is given by Tata Consultancy Services, which has over 600,000 people and various German locations. Overall, the group generated nearly $130 billion in sales last year, implying that the planned investment of $90 billion over five years is not impossible.

Sabarinath is the tech-savvy founder and Editor-in-Chief of TechLog360. With years of experience in the tech industry and a computer science background, he's an authority on the latest tech news, business insights, and app reviews. Trusted for his expertise and hands-on tips for Android and iOS users, Sabarinath leads TechLog360 with a commitment to accuracy and helpfulness. When not immersed in the digital world, he's exploring new gadgets or sharing knowledge with fellow tech enthusiasts.


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