EXCLUSIVE India’s Tata in talks to set up $300 mln semiconductor assembly unit-sources

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NEW DELHI, Nov 26 (Reuters) – India’s Tata group is in talks with three states to make investments up to $300 million to set up a semiconductor assembly and check unit, two sources accustomed to the matter stated, as a part of the conglomerate’s push into high-tech manufacturing.

Tata is speaking to the southern states of Tamil Nadu, Karnataka and Telangana and scouting for land for the outsourced semiconductor assembly and check (OSAT) plant, the sources stated, declining to be recognized because the matter is just not public.

While Tata has beforehand stated it will possible enter the semiconductor enterprise, that is the primary time news concerning the group’s foray into the sector and its scale has been reported.

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An OSAT plant packages, assembles and assessments foundry-made silicon wafers, turning them into completed semiconductor chips.

Tata has checked out some potential areas for the manufacturing facility, one of many sources stated, including a venue was possible to be finalised by subsequent 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 critical for long-term growth,” the supply stated.

Tata group and the three states didn’t reply to requests for remark.

Tata’s push will bolster Indian Prime Minister Narendra Modi’s ‘Make in India’ drive for electronics manufacturing, which has already helped flip the South Asian nation into the world’s second-biggest maker of smartphones.

The Tata group, which controls India’s prime software program providers exporter Tata Consultancy Services (TCS.NS) and has pursuits in every little thing from autos to aviation, plans to make investments in high-end electronics and digital companies, its Chairman N. Chandrasekaran has beforehand stated. learn extra

Potential purchasers of Tata’s OSAT enterprise embrace corporations reminiscent of Intel (INTC.O), Advanced Micro Devices (AMD) (AMD.O), and STMicroelectronics (STM.BN).

The manufacturing facility is predicted to begin operations late subsequent 12 months and will make use of up to 4,000 employees, the supply stated, including availability of expert labour on the proper price was key to the long-term viability of the mission.

“Once Tata starts, the ecosystem will come around … So it’s very critical to find the right place from a labour standpoint,” the supply stated.

Separately, Tata is already constructing a high-tech electronics manufacturing facility in southern Tamil Nadu state.

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Reporting by Sankalp Phartiyal
Editing by Mark Potter

N Chandrasekaran, Chairman of Tata Sons, speaks at the unveiling of Tata Motors HBX compact SUV at the India Auto Expo 2020 in Greater Noida, India, February 5, 2020. REUTERS/Anushree Fadnavis/File Photo

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