Tata Group To Enter Semiconductor Manufacturing

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.

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