Tata Group and Analog Devices Are in Discussions for the Production of Semiconductors in India

According to a statement released by the American chipmaker on 18 September, Analog Devices (ADI) and the Indian giant Tata Group have inked a pact to examine the possibility of manufacturing semiconductor goods in India.

To construct India's first semiconductor production facility in the state of Gujarat and a chip-assembly and testing facility in the state of Assam, the electronics-manufacturing arm of the 156-year-old business, Tata Electronics, intends to invest a total of $14 billion.

At the beginning of this year, India gave its approval for the construction of the semiconductor plant owned by the Tata Group.

According to a statement released by Analog Devices, Tata Electronics, and Autodesk want to investigate the possibility of manufacturing ADI's products in the facility located in Assam and the manufacturing plant located in Gujarat that belongs to Tata Electronics.

Prime Minister Pushing to Make India a Hub of Semiconductor Manufacturing

In the past, the Prime Minister of India has expressed his desire to establish India as a global centre for the design, production, and development of technology related to semiconductors. He has previously indicated that the semiconductor business in India is on the verge of a revolution, and that the industry is going to undergo a transformation as a result of breakthroughs.

"India as it exists today instills confidence in the rest of the globe. It is possible to place an investment on India while the chips are down," he said.

For the semiconductor manufacturing industry around the world, which is currently experiencing a churn as a result of increasing tensions between the United States and China, Modi's comments came at a crucial time. There is a chance that prominent chip makers like Taiwan would be targeted, which might create chances for countries like India, which has significantly increased its capacity to produce semiconductors domestically.

In the beginning of this month, the state of Maharashtra has announced that Adani Group and Tower Semiconductor, which is based in Israel, would come together to invest $10 billion in a chip project. Additionally, the semiconductor division of the infrastructure company Larsen & Toubro, which is responsible for the design of semiconductors for automobiles, intends to construct a factory in the future as well.

Specifications of the Deal

ADI's products will also be utilised by Tata Motors in the production of electric vehicles, as well as by Tejas Networks in the development of their telecom infrastructure, according to the firms.

The companies did not provide any information regarding the products that would be manufactured in India or the products that Tata would want to use.

There have been announcements made by multinational corporations such as NXP Semiconductors and Micron regarding their intentions to invest and construct facilities in the country.

India’s Semicon Mission Set to Receive Crucial 8-Year Financial Boost

Reports indicate that government officials are contemplating a five-year extension of the budgetary assistance period under the second phase of the India Semiconductor Mission (ISM) to eight years.

StartupTalkyNitin Konde