Tata is in talks with the southern states of Tamil Nadu, Karnataka and Telangana and is looking for land for the outsourced semiconductor assembly and testing plant (OSAT), the sources said, refusing to be identified because the matter is not public.
While Tata has previously said it will likely move into the semiconductor business, this is the first time the group has been made aware of the group’s foray into the industry and its scale.
An OSAT factory conditions, assembles and tests foundry-made silicon wafers, turning them into finished semiconductor chips.
Tata has looked at some potential locations for the plant, one of the sources said, adding that a location is likely to be finalized by next month.
âAlthough they (Tata) are very strong on the software side of thingsâ¦ hardware is something they want to add to their portfolio, which is very critical for long-term growth,â the source said.
The Tata Group and the Tri-States did not respond to requests for comment.
Tata’s push will bolster Indian Prime Minister Narendra Modi’s âMake in Indiaâ campaign for electronics manufacturing, which has already helped make the South Asian country the world’s second-largest smartphone maker.
The Tata Group, which controls India’s leading exporter of software services Tata Consultancy Services and has interests in everything from automobiles to aviation, plans to invest in high-end electronics and digital businesses, said previously its president N. Chandrasekaran.
Potential customers for Tata’s OSAT business include companies such as Intel, Advanced Micro Devices (AMD), and STMicroelectronics.
The factory is expected to start operations at the end of next year and could employ up to 4,000 workers, the source said, adding that the availability of skilled labor at the right cost was key to viability. long term of the project.
âOnce Tata starts up, the ecosystem will recoverâ¦ So finding the right place from a workforce perspective is very critical,â the source said.
In addition, Tata is already building a high-tech electronics manufacturing plant in the southern state of Tamil Nadu.