Indian conglomerate Tata Group is making strategic moves to enter the semiconductor industry and enhance its presence in the electronics sector. The company is reportedly seeking land near its existing electronics manufacturing facility in Tamil Nadu’s Krishnagiri district, as it explores options to either expand its mobile components manufacturing unit or establish an outsourced semiconductor assembly and test (OSAT) unit. This expansion plan follows Tata Group’s recent acquisition of Taiwanese contract manufacturer Wistron’s iPhone manufacturing plant in Karnataka’s Kolar district. Tata Electronics, a subsidiary of the Tata Group, was established as a greenfield venture in 2020. It signed a memorandum of understanding with the Tamil Nadu government to set up a phone component manufacturing unit, investing Rs 4,684 crore and generating employment for over 18,000 people. The company has now identified additional land near its existing facility, indicating its intention to further expand its operations.
If successful, Tata Electronics’ expansion plans would result in the establishment of a third major mobile and allied component manufacturing facility in Tamil Nadu, joining Taiwanese companies Foxconn and Pegatron, which already have facilities in the state. Industry experts believe that Tata Electronics has made its ambitions clear in key areas of the semiconductor and electronics industry, with involvement in telecom equipment, semiconductor design, chip fabrication, chip packaging, and non-electronic components for iPhones. To strengthen its position in the semiconductor sector, Tata Electronics recently appointed Randhir Thakur, a former Intel executive, as its CEO. Thakur’s expertise and experience in chip fabrication, packaging, and manufacturing are expected to drive the company’s semiconductor-related endeavors.
The Tata Group is known for its cautious approach, and it aims to understand the market before fully venturing into semiconductor manufacturing. However, the appointment of Thakur and the company’s expansion plans signify its serious commitment to entering the sector. Tata Electronics’ selection as an Apple vendor for iPhone enclosures highlights its recognition as a trusted Indian partner in the electronics manufacturing supply chain. With its expertise in precision component manufacturing and a roadmap that extends to semiconductor fabrication and packaging, Tata Electronics aims to establish a significant presence in the global semiconductor and electronics manufacturing industry in the coming years.