Tatas may prefer Singapore for their semiconductor plans

Singapore’s established semiconductor ecosystem and skilled workforce make it an attractive base for the Tatas’ plans to enter this high-tech sector.

The Tata Group may be leaning towards Singapore for its semiconductor manufacturing ambitions, a move driven by the city-state's favorable policies, advanced infrastructure, and strategic location in Asia. Following a meeting with Tata Sons Chairman N Chandrasekaran, K. Shanmugam, Singapore’s Minister for Home Affairs and Law revealed that semiconductors were a key focus of their discussions. He noted that while Tata Sons has the flexibility to collaborate globally, Singapore is expected to be a significant partner in these endeavors.

The Tata Group has ambitious semiconductor plans, including a Rs 91,000 crore investment in Gujarat and another Rs 27,000 crore project in Assam, partnering with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).

Highlighting Singapore’s strong semiconductor infrastructure, Shanmugam remarked on its established position, with Singapore accounting for 20% of the world’s semiconductor equipment production. Although Singapore’s area is only 670 square kilometers, it hosts 25 semiconductor foundries.

Additionally, supportive government policies, incentives, and proximity to key Asian markets strengthen Singapore’s appeal as a site for such a significant venture. Tata’s potential investment underscores the growing demand for semiconductors, particularly amid global supply chain shifts and rising interest in digital transformation.

Shanmugam, along with minister for manpower and second minister for trade and industry Tan See Leng was on a day-long visit to the financial capital.