‘Semiconductors fundamental’: Tata chief backs chip push as Assam plant takes shape

New Delhi, Oct 13: India is well positioned to emerge as a key player in the global semiconductor supply chain, backed by its talent pool, large domestic market and potential international partnerships, Tata Sons Chairman N Chandrasekaran said on Tuesday.

Speaking at an annual forum in New Delhi, Chandrasekaran said semiconductors would be fundamental to India’s future, with the Tata Group investing in manufacturing capabilities to meet domestic demand and strengthen the country’s position in the global electronics ecosystem.

“... We are in a beautiful spot in India, because we have the talent, we have the domestic market, we can play a part in every global supply chain,” he said.

Chandrasekaran said partnerships with global players would be essential to developing India’s semiconductor ecosystem and accessing the technologies required for manufacturing.

He also highlighted energy availability as a critical factor in determining the sector’s growth.

“We need partnerships, because we have all the technologies... But if you design it, definitely we will get there. But you also have to be careful, because you need to keep an eye on energy,” he said.

The Tata Group is developing a semiconductor assembly and test facility in Assam with an investment of around Rs 27,000 crore, a major part of its push to build domestic chip-manufacturing capabilities.

The project is expected to help meet the growing demand for semiconductors across industries and strengthen India’s integration into the global electronics manufacturing ecosystem.

Earlier On October 12, Chief Minister Himanta Biswa Sarma said that the semiconductor plant at Jagiroad is ready, with pilot chip production having begun.

“The first clean room at Tata Electronics’ Rs 27,000-crore semiconductor assembly and test facility at Jagiroad is ready, and pilot chip production has begun. When the facility is formally inaugurated in the coming weeks, it will mark the Northeast’s arrival in the global semiconductor supply chain,” he wrote on Substack, an online publishing platform.

Tata Electronics is also setting up a semiconductor fabrication plant at Dholera in Gujarat in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), involving an investment of around Rs 91,000 crore.

The semiconductor investments form part of the Tata Group’s broader strategy to expand its presence in advanced manufacturing, electronics and battery technologies.

Chandrasekaran said the group believed semiconductor capabilities would be essential in the long run, although the pace of execution and choice of technologies remained uncertain.

He cautioned against pursuing the most advanced chip-manufacturing technologies without first assessing market demand and commercial viability.

“You cannot be reckless and say that I am going to be putting a 2 nanometre chip (plant). It's just not going to work. So, we need to also see where the demand is,” he said.

Chandrasekaran stressed that investments must be financially sustainable and generate long-term employment, with commercial viability remaining a key consideration for businesses and the country.

While acknowledging uncertainties in the global business environment, he said energy requirements and execution capabilities were among the factors businesses could assess, even as the pace of expansion and choice of technology remained variable.

Chandrasekaran was recently given a third five-year term as Tata Sons chairman amid a boardroom tussle over the group’s future.

With inputs from PTI