Three Indian States in Race to Bag Tata’s Semiconductor OSAT Unit

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The potential clients of Tata’s first venture into the semiconductor arena might include the likes of STmicroelectronics and AMD

The Tata’s are in talks with three Southern India states to setup the corporate’s semiconductor OSAT unit. Once finalized, Tata’s OSAT unit might be setup either in Telangana, Tamil Nadu or Karnataka.

The setup might also mean an investment to the tune of $300 million in the finalized state, which is a factor that none of the Chief Ministers, or the governments, would want to miss. The number of added jobs is also something that would attract a lot of eyes.

It is probable that the corporate house will be taking the final decision about the location within a month or two. The potential clients of Tata’s first venture into the semiconductor arena might include the likes of STmicroelectronics and AMD. Intel might as well be on the cards.

The group had recently appointed Dr Randhir Thakur as director. Dr Thakur was earlier leading Intel’s supply chain operations. Raja Manickam, the founder of Tessolve Semiconductors, has already joined Tata as CEO of its OSAT unit. Manickam is known to be the brains behind Tessolve Semiconductors. He had founded the same in the year 2003. It was in 2016 that the company was acquired by Hero Electronix.

Tata’s Chairman N Chandrasekaran had recently noted that Tata Group is looking to make a foray into semiconductor manufacturing. With the market opportunity of high-tech manufacturing of electronics at $1 trillion, Chandrasekaran said Tata Group has already set up a business to seize the opportunity.

India already has a PLI in existence that promises to reward such ATMP/OSAT units with incentives based on production. Dubbed Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), the scheme was launched in 2020, and promises financial incentive of 25 per cent on capital expenditure for the identified list of electronic goods, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.

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