Tata To Set Up $300 million Semi-Conductor Assembly Unit in India

Indias Tata group is in talks with three states to establish a semi-conductor assembly unit.

The ongoing semi-conductor crisis has caused quite a ruckus for Indian automotive manufacturers. Not only has the launch of several new cars been delayed, but the waiting period has become longer as well. Hence why Tata is looking up opportunities to establish their own semiconductor manufacturing plant in India.

As was reported by Reuters, the Tata group is in talks with three states, Tamil Nadu, Karnataka, and Telangana, where they are scouting for land to set up an Outsourced Semi-Conductor Assembly and Test (OSAT) plant. These plants will source silicon wafers from semiconductor foundries, and will further package, assemble and test them to turn them into a finished semiconductor chip.

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Though, this is not the first time that Tata has expressed interest in the semiconductor chip. This, however, is the first major news about the groups foray into the sector on this scale. As of now, the Tata group is likely to finalise the venue by next month.

As per the source, the new assembly factory is expected to be operational by next year, and it could employ up to 4000 workers. The source further highlighted that the availability of skilled labour at the right cost will further the long term viability of the project. "Once Tata starts, the ecosystem will come around... So it's very critical to find the right place from a labour standpoint," the source added.

By establishing the semi-conductor assembly unit, the Tata group will further the Make In India initiative in electronics manufacturing. The Indian marquee also plans on investing in high-tech electronics and digital business. Some of the potential clients of the OSAT business includes Intel, AMD, and STMicroelectronics. "While they (Tata) are very strong on the software side of things ... hardware is something they want to add to their portfolio, which is very critical for long-term growth," the source said to Reuters.

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