The Tata Group’s plan to set up a $300 million semiconductor manufacturing facility is likely to face some difficulties due to the absence of raw materials in India and its scarce availability outside due to the ongoing shortage globally.
The Tata plant will rely on wafer production from offshore chip foundries, which are already struggling under intense demand. The company is planning to run the group as an outsourced semiconductor assembly and testing facility.
The facility will assemble and test semiconductor chips after sourcing the sophisticated silicon wafers from semiconductor foundries like Taiwan-based TSMC, Fitch Solutions.
The Tata Group is reportedly in discussions with several states to identify the land to build a $300 million chip making unit. So far, Tamil Nadu, Karnataka and Telangana have been identified as possible locations for the plant and it aims to finalise the location and have it up and running by late 2022.
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