Tech

Tata said it would negotiate to set up a $300 million semiconductor assembly unit


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

Sources say Tata is talking to the southern states of Tamil Nadu, Karnataka and Telangana and looking for land for an outsourced semiconductor assembly and testing (OSAT) plant.

When Tata having previously said it was likely to enter the semiconductor business, this is the first time news of the group’s foray into the sector and its scale has been reported.

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

Tata has been looking at several potential sites for the plant, one of the sources said, adding one more is likely to be completed next month.

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

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

Tata’s push will boost India’s Prime Minister Narendra Modi’s The ‘Make in India’ drive in the electronics manufacturing sector has helped make the South Asian nation the world’s second-largest smartphone maker.

Tata Corporation, which controls India’s top exporter of software services, Tata Consultancy Services and has interests in everything from automotive to aviation, plans to invest in digital businesses and high-end electronics, Chairman N. Chandrasekaran previously said.

Potential customers of Tata’s OSAT business include companies such as Intel, Advanced Microphone Device (AMD) and STMicroelectronics.

The plant is expected to begin operations late next year, the source said, and could employ up to 4,000 workers.

“Once Tata starts, the ecosystem will pop up around… So it’s very important to find the right location from a labor standpoint,” the source said.

In addition, Tata is also building a high-tech electronics manufacturing facility in the southern state of Tamil Nadu.

© Thomson Reuters 2021


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