The salt-to-software conglomerate, Tata Group is in talks with three states to build its first semiconductor assembly and test unit, as per Reuters. The new unit will cost the Group nearly $300 million and will be a part of the conglomerate’s push into high-tech manufacturing.
Tata is in talks with Tamil Nadu, Karnataka and Telangana for scouting land for the outsourced semiconductor assembly and test (OSAT) plant. As India emerges as a hub of electronic manufacturing, Tata got this opportunity on time to broaden its current experience with developing hardware. The Group has already stated it intent to develop global business through exports and the current microprocessor and semiconductor shortage appears to have pushed them in that direction. However, this is the first time the company has made its plan public.
As per a source quoted by Swarajya, “While they (Tata) are very strong on the software side of things, hardware is something they want to add to their portfolio, which is very critical for long-term growth.”
The publication even reported Chairman N Chandrasekaran of Tata Group mentioning its aim to expand in high-end electronics and digital industries.
The report noted that Intel, Advanced Micro Devices, and STMicroelectronics are among the potential clients of Tata’s OSAT business.
The new facility will be functional by end of 2022 and may employ nearly 4,000 people, reported the source. The source further added that the availability of competent labour at a reasonable price was key to the project’s long-term survival.
