The company has revealed that the Tata group will look to make its own chipsets in India within a few years. Tata Sons Chairman Natarajan Chandrasekaran said the company was in discussions with “several players” regarding partnerships with existing chip makers, according to a new report from Nikkei Asia.
In the interview, Chandrasekaran revealed that the company has set up Tata Electronics, “under which we are going to set up a semiconductor assembly test business.” Tata has already announced a partnership with Tokyo-based Renesus Electronics in June this year, said the report, which is based around semiconductor design and development. He added that the company is also working on starting new businesses in emerging areas including EVs (electric vehicles).
The remarks come at a time when the Indian government is keen to boost investment in the electronics industry as a whole. Last month, Union Minister of State for Entrepreneurship, Skill Development, Electronics and Technology Rajiv Chandrashekhar said that the Prime Minister has set a target of increasing the output in the electronics sector to $300 billion by 2025-26.
“We are not building leading edge technologies, but a 28 nanometer or 65 nanometer semiconductor business model that supports the sponsor’s quality, process technology and capabilities. We will come out with an approved proposal shortly,” the minister had said As reported by The Indian Express.
As per the Nikkei report, Chandrasekaran expects EV sales to cross traditional internal combustion engine (ICE) sales by 2027 in India, faster than the predicted 2030 timeline, and thus the need for chipsets will only continue to grow.