Tata Group Ventures into Display Semiconductor Manufacturing as It Pins Hope on Electronics Biz

Tata Group’s electronics maker has entered the semiconductor display manufacturing business on Wednesday. Speaking at the IESA Vision Summit, Tata Electronics CEO Randhir Thakur mentioned that the company will be collaborating with Taiwan-based Powerchip Semiconductor Manufacturing Corporation and Himax Technologies, and the Gujarat government to set up a display manufacturing unit in the state. The announcement is part of the salt-to-power conglomerate’s strategy to expand its electronic manufacturing business driven mainly by Prime Minister Narendra Modi’s production-linked incentive (PLI) scheme. 

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“Today, I am delighted to announce signing of an MoU between Tata Electronics, PSMC and Himax to revolutionise India’s display product and technology ecosystem. With PSMC’s proven technology, Tata Electronics will manufacture display chips for Himax in Dholera, Gujarat,” said Thakur, according to PTI.

Tata’s Bet on Electronic Manufacturing 

With the upcoming unit, Tata Electronics will have its presence in all three top semiconductor manufacturing segments. Apart from this, the company, in partnership with PSMC, is currently building a semiconductor fabric plant in Gujarat. The salt-to-power conglomerate had last year announced to set up a chip assembly plant in Assam with an investment of Rs 27,000 crore. 

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The expansions and investments also align with Tata Sons chairman N Chandrasekaran’s bet on salt-to-power conglomerate’s on emerging businesses including Tata Electronics and Tata Digital and eventually aim to bring them under the umbrella of Tata Group’s top 10 businesses. Speaking at the NIT Trichy Global Alumni Meet in January this year, Chandrasekaran said the conglomerate has planned to pump $18 billion into the electronics and semiconductors business for the “long game”. The group is also reportedly set to establish nine factories in the upcoming 24 months.

“We are in precision manufacturing, in semiconductors assembly and testing; and then will have a design house. Our Hosur plant should be operational in 2025 and our semiconductor fab in 2026,” said Chandrasekaran.