For the Tata Group, while a foray into chip making would mean entering a lucrative business that can find customers not only in India but across the world, it would also be notable for captive use with Tata Motors, Tata Power, etc.
The Tata Group is in talks with three states to invest up to $ 300 million in building semiconductor assemblies and test units. The group is currently looking for land in Tamil Nadu, Karnataka, Telangana, upcoming venues next month and outsourced semiconductor assembly and testing facilities.
Tata had previously announced the potential for entry into the semiconductor business, but this is the first time the group has entered this area. They(TATA) plan to invest in high-tech electronics and digital businesses and its entry into the semiconductor industry. Which will facilitate the "Make in India" initiative in electronics manufacturing. They are looking for land to build (OSAT). The OSAT system takes silicon wafers from semiconductor foundries, packes, assembles, tests and processes them into final semiconductor chips.
The company is already considering some potential locations for the factory, and it is said the venue is likely to be completed by next month, as the issue has not yet been announced. The factory will open by the end of next year and will employ up to 4,000 workers. They will also have a skilled workforce at a reasonable cost for a long-term implementation of the project.
The automotive sector has been suffering from a serious shortage of semiconductor chips for several months. This had a major impact on vehicle production and, despite demand, made it difficult to manufacture and sell vehicles. The world economy is slowly recovering from the corona crisis. Many areas have begun anew. Automobile purchases surged during the Christmas season in India. However, a serious shortage of semiconductors is a problem for automobile companies.
The Tata Group had previously been interested in entering the semiconductor business, but this is the first time news has been released about the group's entry into the sector and its scope. They (Tata) stand very powerful on the software side, in the present they are adding hardware to their portfolio which is very important for long-term growth. As soon as Tata begins, the ecosystem will evolve. Finding the right place in terms of work skills is the job.
Managing Tata Consultancy Services, India's leading software service exporter and interested in everything from automobiles to aviation the Tata Group plans to invest in high-quality electronic equipment and digital companies Global electronic products The market is about 1 trillion. The TATA Group is already building new businesses with market share opportunities. Huge investment is required for semiconductor manufacturing. Currently, the global supply chain is completely dependent on China, and no company in India manufactures semiconductors. In addition, there is a corona crisis. This means that companies are dependent on other countries.
In such a scenario, India is likely to be the second-largest semiconductor manufacturing centre in the world. The semiconductors are used in many other electronic items other than cars, mobiles and computers. They perform better work related to semiconductor memory function and control. The use of semiconductors in the automobile industry has increased worldwide in recent times. The TATA Group is one of the most successful industries in the country and has made its mark in various sectors such as Aircraft, Automobiles, Steel, Insurance and chemicals. The Tata Group may finalize everything about the semiconductor assembly project next month.