Tata Said to Be in Talks to Set Up $300-Million Semiconductor Assembly Unit


The Tata group is in talks with three states to invest up to $300 million (about Rs 2,245 crore) to set up a semiconductor assembly and testing unit, two sources familiar with the matter said, adding to the group’s involvement in high-tech manufacturing. As part of the push.

Sources said Tata is in talks with the southern states of Tamil Nadu, Karnataka and Telangana and is looking for land for an outsourced semiconductor assembly and test (OSAT) plant.

whereas Bye has previously said that it will enter the semiconductor business, this is the first time news of the group’s entry into the sector and its scale has been reported.

An OSAT plant packages, assembles and tests foundry-made silicon wafers, turning them into finished semiconductor chips.

One of the sources said Tata has looked at some possible locations for the factory, with a site likely to be finalized by next month.

“Although they (Tata) are very strong on the software side of things… hardware is something they want to add to their portfolio, which is very important for long-term growth,” the source said.

The Tata Group and the three states did not respond to requests for comment.

Tata’s push will strengthen Indian PM of Narendra Modi The ‘Make in India’ campaign for electronics manufacturing, which has already helped the South Asian country become the world’s second largest smartphone maker.

The Tata Group, which controls India’s top software services exporter Tata Consultancy Services and has interests in everything from autos to aviation, is planning to invest in high-end electronics and digital businesses, its chairman N Chandrasekaran said. has said before.

Intel among potential customers of Tata’s OSAT business Advanced Micro Devices (AMD), and STMicroelectronics.

The source said that while the factory is expected to start operations by the end of next year and could employ 4,000 workers, availability of skilled workers at the right cost was critical to the project’s long-term viability.

“Once Tata starts up, the ecosystem will come around… so finding the right place from the labor point of view is very important,” the source said.

Separately, Tata is already building a high-tech electronics manufacturing facility in the southern state of Tamil Nadu.

© Thomson Reuters 2021