India's Semiconductor Ambitions: Tata Group's Major Investments

Tata Group's Vision for Semiconductor Manufacturing

New Delhi, Oct 13: According to N Chandrasekaran, Chairman of Tata Sons, India is poised to become a significant player in the global semiconductor supply chain, leveraging its skilled workforce, expansive domestic market, and potential for international collaborations.

During a recent annual forum in New Delhi, he emphasized the critical role semiconductors will play in India's future, noting that the Tata Group is investing in manufacturing capabilities to satisfy local demand and enhance the nation's position within the global electronics landscape.

“India is in a favorable position, as we possess the talent and a substantial domestic market, allowing us to contribute to every global supply chain,” he remarked.

Chandrasekaran highlighted the necessity of forming partnerships with international entities to cultivate India's semiconductor ecosystem and gain access to essential manufacturing technologies.

He also pointed out that energy availability is a vital factor influencing the sector's growth.

“We require collaborations, as we have the necessary technologies... However, careful consideration of energy needs is crucial,” he added.

The Tata Group is in the process of establishing a semiconductor assembly and testing facility in Assam, with an investment of approximately Rs 27,000 crore, as part of its initiative to develop domestic chip-manufacturing capabilities.

This project aims to address the increasing demand for semiconductors across various industries and bolster India's integration into the global electronics manufacturing framework.

On October 12, Chief Minister Himanta Biswa Sarma announced that the semiconductor plant in Jagiroad is operational, with pilot chip production already underway.

“The first clean room at Tata Electronics’ Rs 27,000-crore semiconductor assembly and test facility at Jagiroad is ready, and pilot chip production has begun. The formal inauguration of the facility in the coming weeks will signify the Northeast's entry into the global semiconductor supply chain,” he shared on Substack, an online publishing platform.

Additionally, Tata Electronics is collaborating with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to establish a semiconductor fabrication plant in Dholera, Gujarat, with an investment of around Rs 91,000 crore.

These semiconductor investments are part of the Tata Group’s broader strategy to enhance its footprint in advanced manufacturing, electronics, and battery technologies.

Chandrasekaran expressed confidence that semiconductor capabilities will be crucial in the long term, although the speed of execution and technology selection remain uncertain.

He advised caution against pursuing the most advanced chip-manufacturing technologies without first evaluating market demand and commercial viability.

“One cannot recklessly decide to establish a 2-nanometer chip plant without understanding the market,” he cautioned.

Chandrasekaran emphasized that investments should be financially sustainable and create long-term job opportunities, with commercial viability being a significant consideration for both businesses and the nation.

While acknowledging the uncertainties in the global business landscape, he noted that energy requirements and execution capabilities are factors businesses can evaluate, even as the pace of growth and technology choices remain unpredictable.

Recently, Chandrasekaran was granted a third five-year term as Tata Sons chairman amid ongoing discussions regarding the group's future direction.