India could be key for global chip supply chains. The company is also looking to emerge into EVs.
In a recent interview, Tata Sons Chairman Natarajan Chandrasekaran revealed that the conglomerate plans to launch new businesses very soon. Making India a key part of global chip supply chains, India’s Tata Group is soon to begin production of semiconductors in the country.
Chandrasekaran said while referring to an electronic components manufacturer that the group founded in 2020, “We have created Tata Electronics, under which we are going to set up a semiconductor assembly testing business. We will have discussions with multiple players as well.” Tata has already announced a semiconductor design and development partnership with Renesas Electronics in June.
Tata’s move into chipmaking is ground-breaking for India, especially as the semiconductor market is aimed at $64 billion by 2026. In spite of the demand rising for semiconductors, the country has virtually no semiconductor industry, other than software-based design.
Tata Group also plans to launch new businesses in emerging fields such as electric vehicles. Chandrasekaran added, that the transition involves “preparing them for, number one, the digital world. The second is a transition for future energy and sustainability. The third is a transition toward resilience in supply chains.”
He also revealed that the group plans to invest $90 billion over the next five years. “I expect by 2027, EV sales will cross IC engine sales,” faster than Tata’s public prediction of 2030, Chandrasekaran said.