The Tata Group, one of India’s largest and oldest conglomerates, is in advanced discussions with Analog Devices (ADI) to set up a joint venture aimed at manufacturing semiconductor chips in India. This collaboration marks a significant step in India’s efforts to become a global player in the semiconductor industry.

Tata Electronics, the electronics-manufacturing arm of the 156-year-old Tata Group, has committed a substantial investment of $14 billion to establish India’s first semiconductor fabrication facility in the state of Gujarat.

Additionally, the company is setting up a chip-assembly and testing facility in Assam. These facilities are poised to become central to India’s ambitions in semiconductor manufacturing, with the Gujarat plant being a key component in this strategy.

Earlier this year, the Indian government gave the green light to the construction of Tata Group’s semiconductor plant, underscoring the country’s commitment to bolstering its semiconductor capabilities.

The partnership between Tata Electronics and Analog Devices aims to explore the production of ADI’s semiconductor products within these newly established facilities. This collaboration could potentially accelerate India’s progress in the semiconductor sector, positioning it as a viable alternative to established global semiconductor hubs like Taiwan.

India’s semiconductor ambitions
The push to develop a robust semiconductor industry in India is part of a broader initiative led by Prime Minister Narendra Modi. The Indian government is keen to reduce the country’s dependence on imported chips and to establish itself as a significant player in the global semiconductor market.

This ambition is evident in the growing number of investments and partnerships aimed at building semiconductor manufacturing capabilities in the country.

In addition to the Tata Group’s efforts, other major players have also announced significant investments in India’s semiconductor sector. The Adani Group, in partnership with Israel’s Tower Semiconductor, has committed $10 billion to a chip project in Maharashtra.

Similarly, Larsen & Toubro’s semiconductor unit, which specialises in designing chips for vehicles, has plans to eventually build a factory, further bolstering India’s semiconductor infrastructure.

Strategic collaborations and future prospects
Under the proposed deal with Analog Devices, Tata Group plans to integrate ADI’s semiconductor products into its own businesses. This includes the use of these chips in Tata Motors’ electric vehicles and Tejas Networks’ telecom infrastructure. While specific details about the products to be manufactured or used by Tata have not been disclosed, the collaboration indicates a strategic alignment between the two companies, leveraging each other’s strengths to enhance their offerings.

The interest of global semiconductor giants like NXP Semiconductors and Micron in establishing facilities in India further signals the country’s growing importance in the global semiconductor landscape.

As these developments unfold, India is positioning itself as a critical player in the semiconductor industry, potentially transforming its economy and technological landscape.

The collaboration between Tata Group and Analog Devices, alongside other major investments, reflects India’s determined push to emerge as a global hub for semiconductor manufacturing. This initiative not only aligns with the country’s economic goals but also addresses the growing demand for semiconductors in various industries, from automotive to telecommunications.