Recently, Tata Group has made its entry into the 5G telecom equipment manufacturing space with the acquisition of a majority stake in Tejas Networks.
August 13, 2021
The Tata Group is going to enter into the manufacturing of semiconductors and it has set up a business to seize the opportunity, the group Chairman N Chandrasekaran said while speaking at the annual general meeting of the IMC Chamber of Commerce and Industry.
Speaking about the new developments at the multinational conglomerate, he added, “At the Tata group, we have already pivoted into a number of new businesses like electronics manufacturing, 5G network equipment as well as semiconductors, in all probability.”
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“On rebalancing supply chains, India can benefit from global shifts. The Tata Group has already set up a business to seize the promise of high-tech manufacturing for electronics. A domestic electronics industry could unlock USD 1 trillion in GDP and create millions of jobs,” he said.
Semiconductors are used in a diverse range of applications, including fuel-pressure sensors, digital speedometers, and navigation displays. As a matter of fact, the manufacturing of semiconductors will necessitate huge investments and India does not have any such facility yet.
Chandrasekaran also said when it came to environmental sustainability, businesses needed to have “time-bound goals, not vague and distant targets”. It was critical to invest in research and development in future growth sectors such as renewable energy, he added.
The foray into the semiconductor segment will help the Tata Group supply these key components for their captive use, to Tata Motors and Tata Power, apart from other companies across the world.
Chandrasekaran explained that alterations to the global supply chains, which are heavily dependent on China, in the aftermath of the pandemic and geopolitical changes, will make businesses shift their reliance on other countries and called this a huge opportunity for India, which becomes the second base.
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Recently, Tata Group has made its entry into the 5G telecom equipment manufacturing space with the acquisition of a majority stake in Tejas Networks.
The group’s move is also in line with the government’s renewed vision of attracting semiconductor manufacturing facilities in India. The Ministry of Electronics and IT in March had invited expressions of interest for setting up chip-making facilities in the country. Besides, the government has also put forth its vision to come up with an incentive plan in the next six months for the companies involved in chip manufacturing.
