Tata Inks Pact With Analog Devices To Explore Opportunities In Indian Chip Manufacturing

Amid India’s push to become self-reliant in semiconductor chips, the N Chandrasekaran-led Tata Group has entered into a strategic partnership with US-based semiconductor manufacturing company Analog Devices aiming to build a robust electronics manufacturing ecosystem in the country.

In a statement, the company said that Tata Electronics, Tata Motors and Tejas Networks have signed a memorandum of understanding (MoU) with Analog Devices to explore joint opportunities in semiconductor manufacturing in India.

Besides, the companies have also agreed to discuss a roadmap to integrate Analog Devices’ products with Tata’s range of electric vehicles as well as in Tejas Networks’ telecom infrastructure.

As part of the deal, Tata Electronics will manufacture Analog Devices’ products in its upcoming semiconductor fab plant in Gujarat, which is expected to start production of chips by 2026, as well as in its outsourced semiconductor manufacturing and assembly test (OSAT) facility in Assam.

Additionally, Tata Motors and Analog Devices plan to explore joint opportunities to manufacture electronics  hardware components for energy storage solutions and power electronics in both commercial and passenger vehicle segments.

By tapping into Tata’s capabilities, Analog Devices aims to accelerate the production of electric vehicles and communications and network infrastructure, CEO and chairman Vincent Roche said.

The development comes at a time when Tata Group is transitioning into green energy businesses, semiconductor manufacturing and smartphone production. Tata Electronics is set to manufacture Apple’s flagship iPhone devices in India. It already makes iPhone cases for the tech giant.

Tata Electronics is also building India’s first semiconductor fab in Gujarat’s Dholera, valued at $11 Bn (about INR 920.7 Cr). Besides, it is also investing $3 Bn (INR 251.1 Cr) in its Assam facility for assembly and testing of semiconductor chips.

In an effort to become a semiconductor powerhouse, the Centre has approved five semiconductor fabrication projects so far, which are expected to bring in investments worth INR 1.52 Lakh Cr. 

Speaking at Semicon India 2024 earlier this month, Prime Minister Narendra Modi said that “our dream is to have India-made chip in every device in the world.” In line with PM Modi’s vision, the Centre is planning to widen the scope of the India Semiconductor Mission.

Last week, Union electronics and information and technology minister Ashwini Vaishnaw said that the government will roll out the second phase of the India Semiconductor Mission in the next 3-4 months, and offer demand incentives to raw material suppliers, component companies and other vendors in the semiconductor ecosystem, besides just semiconductor fab and chip packaging firms.

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