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Exclusive-India’s Tata in talks to set up $300 million semiconductor assembly unit-sources -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO. Chairman of Tata Sons N Chandrasekaran speaks during the unveiling Tata Motors’ HBX compact SUV, Tata Motors. It was held at India Auto Expo 2020, Greater Noida (India), February 5, 2020. REUTERS/Anushree Farnavis/File Photograph

Sankalp Pattiyal

NEW DELHI (Reuters – India’s Tata Group is currently in negotiations with three US states for $300 million to establish a semiconductor test facility and assembly plant. The talks are part of Tata’s expansion into high-tech manufacturing.

Tata is currently in the south states of Tamil Nadu Karnataka, Telangana, and is looking for land to construct the OSAT (outsourced semiconductor assembly test) plant.

Tata had previously indicated that the company would be entering the semiconductor market, but it is now known that the news of Tata’s foray in the sector has not been widely reported.

OSAT plants are responsible for packaging, assembly, and testing foundry-made silicon wafers. They then turn them into semiconductor chips.

Tata looked at potential locations to build the factory. One source told us that Tata also considered other options. A finalized location would be announced by next month.

According to the source, Tata (the company) is strong in software but hardware is what they desire to expand their portfolio. It is essential for long-term success.

Tata Group and three other states didn’t respond to inquiries for comment.

Tata’s move will support Indian Prime Minister NarendraModi’s ‘Make in India’ drive for electronics manufacturing. It has already made South Asia the second-largest producer of smartphones.

Tata Consultancy Services is India’s most important software services exporter. It has interests in autos, aviation and other industries. According to N. Chandrasekaran (its Chairman), the Tata group will invest in high-end electronic and digital businesses.

Companies such as Intel (NASDAQ :), Advanced Micro Devices(NASDAQ :), STMicroelectronics and STMicroelectronics are potential clients for Tata’s OSAT Business.

According to sources, the factory will be operational by the end of next year. It could have up to 4,000 employees.

The ecosystem will eventually come together once Tata is started. According to the source, it is crucial that you find the best place for your labour needs.

Tata has also begun construction of a manufacturing plant for high-tech electronic products in the southern Tamil Nadu region.

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