New Delhi: The Tata group is in talks with three states to invest up to $300 million to set up semiconductor assembly and testing units, two sources familiar with the matter said, marking the Tata group's initial step in high technology manufacturing.
Sources also said that Tata is in talks with the southern states of Tamil Nadu, Karnataka and Telangana and is looking for land for an outsourced semiconductor assembly and test (OSAT) plant.
Earlier, Tata had said that it would enter the semiconductor business, this is the first time that there has been news about the group's foray into the sector and its scale. They will be prepared and converted into semiconductor chips by assembling and testing foundry-made silicon wafers at an OSAT plant.
One of the sources said that while Tata has looked at some possible locations for the factory, a site is likely to be finalized by next month. "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 important for long-term development," the source said. However, the Tata Group and the three states have not responded in this regard.
Tata Group Chairman N Chandrasekaran said, "Tata's effort will boost Indian Prime Minister Narendra Modi's 'Make in India' campaign to manufacture electronics, which has already helped the South Asian country become the world's second largest smartphone maker. is of. The Tata group, which controls India's top software consultancy services (TCS.NS) and holds a stake in everything from autos to aircraft, is planning to invest in high-end electronics and digital businesses.
Potential customers of Tata's OSAT business include Intel (INTC.o), Advanced Micro Devices (AMD) (AMD.O) and STMicroelectronics (STM.BN). The source said that while the factory is expected to be commissioned by the end of next year and could employ 4,000 workers, availability of skilled labor at the right cost was critical to the project's long-term viability.
“Once Tata starts work the ecosystem will come around it… so finding the right place from labor point of view is very important,” the source said.
Separately, Tata is already building a high-tech electronics manufacturing facility in the southern state of Tamil Nadu.