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Tata in talks over $300 million Indian chip packaging factory

Business news |
By Peter Clarke

Tata is talking to Tamil Nadu, Karnataka and Telangana and looking for likely locations to set up a semiconductor assembly and test plant, according to a Reuters report that referenced unnamed sources.

Tata has looked at some potential locations for a factory and the decision is likely to be finalized in the next month, the report said. The factory is expected to start operations late 2022 and could employ up to 4,000 workers, Reuters quoted a source as saying.

Potential clients of Tata’s assembly and test business include companies such as Intel, Advanced Micro Devices (AMD), and STMicroelectronics, the report said.

Natarajan Chandrasekaran, the chairman of the group, which owns of Jaguar Land Rover, had previously said the group planned to enter the semiconductor business in the medium term (see Tata plans to make semiconductors in India). This was seen to be, in part, a response to the semiconductor supply chain shortages that have affected the automobile industry. But it also reflects a strategic effort by Tata to increase its capabilities in hardware to complement those it already has in software.

Separately, Tata is already building a high-tech electronics manufacturing facility in southern Tamil Nadu state.

Related links and articles:

Reuters report

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