Tata Group plans to enter the semiconductor space

With plans to amp up its electronic segment, the Tata Group may soon enter the semiconductor space. 

The Tata Group wants to get more involved in making electronics, like phones and computer chips. They are already looking for land near their factory in Tamil Nadu to do this. They might expand their existing unit that makes parts for phones or create a new unit to put together and test computer chips. 

According to an exclusive report, this planned expansion by Tata Electronics, which was set up as a greenfield venture in 2020, comes on the heels of the Tata Group’s ongoing acquisition of Taiwanese contract manufacturer Wistron’s iPhone manufacturing plant in neighbouring Karnataka’s Kolar district. 

Tatas are also seeking for land in Coimbatore, which is a western district of Tamil Nadu. 

Tata Electronics, a division of the Tata Group, and the Tamil Nadu government signed a memorandum of understanding in 2021 to establish the phone component manufacturing unit with an investment of Rs 4,684 crore. The plant is anticipated to employ more than 18,000 people, a report added. 

If Tata Electronics' expansion plans are successful, a third significant manufacturing site for mobile and related components will be built in Tamil Nadu, where both Foxconn and Pegatron from Taiwan have factories.