The Tata group has lined up a mammoth investment of $90 billion over the next five years across its existing and new businesses, Tata Sons’ Chairman Natarajan Chandrasekaran told in a recent interview with Japan’s financial publication Nikkei Asia in Tokyo.
The investment would include semiconductor manufacturing and electric vehicles.
Tata Group will begin producing semiconductors in the country within a few years. Tata Sons’ Chandrasekaran confirmed. The company is likely to tie-up with semiconductor manufacturers and foundries in the US, Japan, Taiwan and South Korea are potential partners in the project. The confirmation comes just days after reports that Apple is getting into iPhone assembly in India.?
The Tata group is also reportedly in talks to buy Wistron Corp's only manufacturing facility in India for up to Rs 50 billion ($612.6 million), TOI report mentioned.
"We have created Tata Electronics, under which we are going to set up a semiconductor assembly testing business," Chandrasekaran said, "We will have discussions with multiple players," he added. His statements signal the possibility of partnerships with existing chip manufacturers. Chandrasekaran also said that Tata will "look into the possibility of eventually launching an upstream chip fabrication platform.
"An upstream semiconductor manufacturing process plant called wafer fabrication plant, or fab, is considered more challenging both technologically and financially. The downstream process of assembly and testing is widely regarded as less tough. Also, it is considered to be difficult for an inexperienced company to launch chip-making business on its own.
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The Tata Sons’ Chairman said that the group as a whole plans to invest $90 billion over the next five years. In addition to semiconductors, the Chairman said the company is in the process of starting up new businesses such as the manufacture of EVs and EV batteries, production of renewable energy and development of "super apps" that allow users to buy goods and services from groceries to financial products.
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