Tata Group Selects States and Identifies Locations for Setting-up its Outsourced Semiconductor Assembly and Test unit

Published  November 29, 2021   0
S Staff

Tata will begin this operation next year that could offer employment opportunities to 4,000 people

The global business tycoon Tata Group reportedly in talks with at least three states to commence its semiconductor test and assembly plant with an investment of $300 million. It is a part of Tata’s interest into technology manufacturing for a very long time because from salt to steel and automobiles, the company has been spearheading India's industry for scores of years. According to unnamed sources from the company, Tata has been trying hard to push itself into electronics and semiconductor manufacturing for several years.

As the matter is not announced officially, sources wished to be unnamed and stated that Telangana, Tamil Nadu, and Karnataka are the prime choice for Tata for setting up the unit and searching for land. This is the first official report about the company’s entry into this segment, while previously, Tata has expressed its interest in entering into this segment. An OSAT plant packages, assembles and tests foundry-made silicon wafers, turning them into finished semiconductor chips, states Reuters.

It is largely speculated that by the end of the coming month, Tata would finalize its venue and it already started gathering information for its preferred locations for the outsourced semiconductor assembly and test (OSAT) unit. While reaching for the official statement, the company is yet to respond to media queries. According to experts, the prospective clients of Tata’s OSAT business could be STMicroelectronics, Intel, and AMD. The unit would commence its operations next year that could offer employment opportunities to 4,000 people. It is important to have skilled and proficient workers at the right price for the long-term growth of the venture.

The unnamed sources told Reuters, “While they (Tata) are very strong on the software side of things ... hardware is something they want to add to their portfolio, which is very critical for long-term growth. Once Tata starts, the ecosystem will come around ... So it's very critical to find the right place from a labour standpoint."