Tata’s $90 billion tech bet: Making chips for smartphones, laptops and more – Times of India
It’s official. One of the country’s largest business group Tata Group is set to enter chip production. According to a report in Nikkei Asia, Tata Group will begin producing semiconductors in the country within a few years. Tata Sons chairman Natarajan Chandrasekaran confirmed the same to the publication in an interview. The company is likely to tie-up with semiconductor manufacturers and foundries in the US, Japan, Taiwan and South Korea are potential partners in the project. The confirmation comes just days after reports that Apple is getting into iPhone assembly in India. The group is reportedly in talks to buy Wistron Corp’s only manufacturing facility in India for up to 50 billion rupees ($612.6 million).
What N Chandrasekaran said
“We have created Tata Electronics, under which we are going to set up a semiconductor assembly testing business,” Chandrasekaran said, “We will have discussions with multiple players,” he added. His statements signal the possibility of partnerships with existing chip manufacturers. Chandrasekaran also said that Tata will “look into the possibility of eventually launching an upstream chip fabrication platform.” An upstream semiconductor manufacturing process plant called wafer fabrication plant, or fab, is considered more challenging both technologically and financially. The downstream process of assembly and testing is widely regarded as less tough. Also, it is considered to be difficult for an inexperienced company to launch chipmaking business on its own.
The chairman further said that the group as a whole plans to invest $90 billion over the next five years. In addition to semiconductors, the chairman said the company is in the process of starting up new businesses such as the manufacture of EVs and EV batteries, production of renewable energy and development of “super apps” that allow users to buy goods and services from groceries to financial products.
India betting big on chip manufacturing
The government has been betting big on local semiconductor manufacturing in the midst of diplomatic tussle between the US, China and Taiwan. Seeing the opportunity at hand, the Centre has launched the India Semiconductor Mission to tap into the vast potential of the market dominated by China and Taiwan. The government is planning to fund semiconductor design in India and has set aside a fund of Rs 1,000 crore for this.
Tata Electronics, a unit of Tata Group, already supplies components to Apple from its Hosur unit in Tamil Nadu. Bloomberg had reported in September that Tata was in talks with Wistron to establish a joint venture to assemble iPhones in India. Currently, iPhones are assembled in India by at least three of Apple’s global suppliers – Wistron in Karnataka, as well as Foxconn and Pegatron in Tamil Nadu.
What N Chandrasekaran said
“We have created Tata Electronics, under which we are going to set up a semiconductor assembly testing business,” Chandrasekaran said, “We will have discussions with multiple players,” he added. His statements signal the possibility of partnerships with existing chip manufacturers. Chandrasekaran also said that Tata will “look into the possibility of eventually launching an upstream chip fabrication platform.” An upstream semiconductor manufacturing process plant called wafer fabrication plant, or fab, is considered more challenging both technologically and financially. The downstream process of assembly and testing is widely regarded as less tough. Also, it is considered to be difficult for an inexperienced company to launch chipmaking business on its own.
The chairman further said that the group as a whole plans to invest $90 billion over the next five years. In addition to semiconductors, the chairman said the company is in the process of starting up new businesses such as the manufacture of EVs and EV batteries, production of renewable energy and development of “super apps” that allow users to buy goods and services from groceries to financial products.
India betting big on chip manufacturing
The government has been betting big on local semiconductor manufacturing in the midst of diplomatic tussle between the US, China and Taiwan. Seeing the opportunity at hand, the Centre has launched the India Semiconductor Mission to tap into the vast potential of the market dominated by China and Taiwan. The government is planning to fund semiconductor design in India and has set aside a fund of Rs 1,000 crore for this.
Tata Electronics, a unit of Tata Group, already supplies components to Apple from its Hosur unit in Tamil Nadu. Bloomberg had reported in September that Tata was in talks with Wistron to establish a joint venture to assemble iPhones in India. Currently, iPhones are assembled in India by at least three of Apple’s global suppliers – Wistron in Karnataka, as well as Foxconn and Pegatron in Tamil Nadu.
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