Tata Sons Chairman N Chandrasekaran said that the conglomerate will announce soon its semiconductor chip fabrication unit.
Tata Group Likely To Announce Its Chip Making Unit Soon- Check Details (image source: iStock)
Tata Sons Chairman N Chandrasekaran said that the conglomerate will announce soon its semiconductor chip fabrication unit. Chairman Chandrasekaran said while delivering the 20th Anantharamakrishnan memorial lecture on “India’s Leadership in a Pivotal Decade” after being conferred with the MMA-Amalgamations Business Leadership Award 2023. The conglomerate is betting on the future, with investments in Air India and the electronics and semiconductor sector. However, Chandrasekaran did not provide further details about the semiconductor fab unit.
Tata Group Looking for Potential Partnerships
According to an ET Report, Tata Group is looking to partner with Taiwanese chipmakers – Powerchip Semiconductor Manufacturing Corporation (PSMC) or UMC Group for its proposed chip fabrication plant at Dholera in Gujarat.
Chip-Making Proposed Plants
Israel’s Tower Semiconductor Ltd. is proposing a $9 billion plant, while Tata Group has proposed an $8 billion chip fabrication unit. Both projects would be located in Gujarat. Semiconductors have become a key geopolitical battleground, with countries like the US, Japan, and China investing heavily in domestic capabilities. Modi’s initiative to transform India into a global manufacturing hub includes attracting international chipmakers.
India’s Chipmaking Incentive Plan
Under India’s chipmaking incentive plan, the government would cover half the cost of any approved projects, with an initial budget of $10 billion. Despite these incentives, India has yet to find success in this sphere. A high-profile partnership between local firm Vedanta Resources Ltd. and Taiwan’s Foxconn Technology Group collapsed after failing to find a suitable partner for chip design technology.
The Modi administration’s financial incentives have helped Apple Inc. export billions of dollars in iPhones from India, and Alphabet Inc.’s Google is preparing to assemble phones in the country this year. The semiconductor fund assisted US memory maker Micron Technology Inc. in setting up a $2.75 billion assembly and testing facility in Gujarat.
