Tata group is in talks with three states to invest up to approx. Rs. 2,245 crore to set up a semiconductor assembly and test unit, as per sources said, as part of the conglomerate’s push into high-tech manufacturing.
Tata is talking to the southern states of Tamil Nadu, Karnataka, and Telangana and scouting for land for the outsource semiconductor assembly and test (OSAT) plant, as sources said, declining to be identified as the matter is not public.
Also Tata has previously said it would likely enter the semiconductor business, this is the first time news about the group’s foray into the sector and its scale has been report.
An OSAT plant packages, assembles, and tests foundry-made silicon wafers, turning them into finish semiconductor chips.
Tata look at some potential locations for the factory, one of the sources said, adding a venue was likely to be finalise by next month.
Tata group and the three states did not respond to requests for comment.
Tata’s push will boost Indian Prime Minister Narendra Modi’s ‘Make in India’ drive for electronics manufacturing, which has already help turn the South Asian nation into the world’s second-biggest maker of smartphones.
The Tata group, which controls India’s top software services exporter Tata Consultancy Services and has interests in everything from autos to aviation, plans to invest in high-end electronics and digital businesses, its Chairman N. Chandrasekaran has said.
Potential clients of Tata’s OSAT business include companies such as Intel, Advanced Micro Devices (AMD), and STMicroelectronics.
The factory is expect to start operations late next year and could employ up to 4,000 workers, the source said, adding availability of skill labour at the right cost was key to the long-term viability of the project.
Tata is already building a high-tech electronics manufacturing facility in southern Tamil Nadu state.
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