The Tata group is aiming to expand into semiconductor production and has established a firm to capitalise on the potential, according to Chairman N Chandrasekaran.
Tata group will try to get a foothold in the $1 trillion high-tech electronics manufacturing industry, the company's chairman said while speaking at an industry event on Monday. The group has recently entered the 5G telecom equipment manufacturing by acquiring a majority stake in Tejas Networks and became a competitor to global gear market leaders like Ericsson, Nokia, Huawei and Samsung. The Tata group reportedly plans to make mobile handsets and components at its new factory in Tamil Nadu for making chipsets.
The Tata group chairman's statements come at a time when automakers around the world are experiencing a serious shortage of semiconductors, which is affecting their operations.
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According to Chandresakar, In the post-pandemic world, four themes are emerging: fast digital acceleration, a new approach to supply chains, a re-imagination of growth with environmental sustainability at the centre, and the incorporation of health and wellness issues by all businesses.
The Tata group is also a big user of semiconductors, and its car division, Tata Motors, and its Jaguar Land Rover unit are experiencing chip shortages. A move into the semiconductor sector will allow the Tata group to supply these critical components to Tata Motors and Tata Power, as well as other firms throughout the world.
Semiconductors are utilised in a variety of applications, including as fuel-pressure sensors, digital speedometers, and navigation displays. Semiconductor production necessitates large expenditures, and India currently lacks such a facility. The Vedanta group, which recently emerged as the top bidder for Videocon, is also considering a move into the semiconductor business.
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