Tata adds NXP to wafer fab discussions, says report
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India’s Tata Electronics is talking to NXP about acting as a foundry supplier to the Dutch chip giant, according to The Economics Times.
Tata is constructing a wafer fab in Gujurat and packaging facility in Assam that began in March 2024 with support from Taiwan’s PSMC. Chip manufacturing expected to start in 2026.
The fab in Dholera, Gujurat, has a remit to produce power management IC, display drivers, microcontrollers (MCUs). NXP is looking to see which of its products could be mapped to the Indian fab, the report said citing unnamed sources.
A deal between Tata Electronics and NXP could be similar to a collaboration with Analog Devices Inc. that Tata has already agreed. ADI has signed a memorandum of understanding with Tata Electronics, Tata Motors and Tejas Networks to explore opportunities for semiconductor manufacturing in India.
Tata Electronics is also planning building two additional fabs after the first fab comes into production in 2026, according to previous reports.
These deals support a growing trend amongst fab-lite chip companies towards local manufacturing for different geographical markets. Meanwhile Tata Electronics, and its parent steel-to-software conglomerate Tata Group, are well-positioned to benefit from an exodus of equipment manufacturing from China.
Geopolitical uncertainty has grown alongside US-China trade tension and has heightened as US President Trump has announced a series of tariffs on imports of products from across the world.
Electric vehicle maker Tesla Inc. (Austin, Texas) could be a customer for Tata chips. A year ago, Tesla founder and CEO Elon Musk was expected to meet with Indian Prime Minister Narendra Modi to discuss investments of between US$2 billion and US$3 billion earmarked for electric vehicle manufacturing in India.
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