Tata Group is looking to expand big in the electronic and semiconductor business

The Tata Group is trying to expand its electronics portfolio and may be finalising preparations to enter the semiconductor market. Tata Group is actively looking for property near its electronics manufacturing site in Tamil Nadu’s Krishnagiri district.

The conglomerate might either expand the scope of its existing mobile component manufacturing business there or establish an outsourced semiconductor assembly and test (OSAT) operation.

Tata Electronics’ planned expansion, which was established as a greenfield venture in 2020, follows the Tata Group’s ongoing acquisition of Taiwanese contract manufacturer Wistron’s iPhone manufacturing plant in neighbouring Karnataka’s Kolar district, as reported by ET on May 22.

Tata Electronics, a subsidiary of the Tata Group, inked a memorandum of understanding with the Tamil Nadu government in 2021 to establish the phone component manufacturing complex, which will cost Rs 4,684 crore and employ more than 18,000 people.

If the development plans of Tata Electronics are successful, a third major mobile and allied component manufacturing site would be built in Tamil Nadu. Foxconn and Pegatron, both of Taiwan, have facilities in the state.

Expelts believe Tata Electronics has already made its objectives in critical sections of the end-to-end semiconductor and electronics industries obvious, either directly or indirectly.

Earlier this month, the Tata Group announced the appointment of Intel veteran Randhir Thakur as CEO of Tata Electronics. Thakur, who previously led Intel Foundry Services, is expected to manage the company’s attempts to enter semiconductor chip fabrication, packaging, and manufacturing.

Tata Electronics is the sole domestic company that Apple has shortlisted as a vendor as it seeks to diversify its manufacturing away from China. Tata Electronics has been contracted by Apple to manufacture iPhone enclosures.

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