Tata Group’s preparation to set up a semiconductor plant

Tata Group, which does business ranging from automobiles to software, has planned to set up a semiconductor plant. Demand for semiconductors has increased in the last few years. Due to less number of companies manufacturing it, manufacturing in some sectors has also been affected.

Tata Sons Chairman, N Chandrasekaran said that an announcement on setting up a semiconductor plant can be made soon. However, he did not give further information about this. Recently, it was said in some media reports that Tata Group may consider tie-up with semiconductor companies like Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group for this. Even in January, Chandrasekaran had said that Tata Group may soon set up a semiconductor plant in Dholera, Gujarat.

The central government has also announced incentives for semiconductor manufacturing in the country. American company Micron Technology also plans to start manufacturing of semiconductors in the country. Micron Technology is preparing to set up an advanced semiconductor assembly plant in Sanand, Gujarat. Tata Projects will construct this plant. This plant will be in 93 acres. Last year, Prime Minister Modi had announced to provide up to 50 percent financial assistance from the Central Government to those setting up semiconductor manufacturing units in the country.

Modi had said that his government has provided many facilities for the semiconductor industry. He said that there will be strong growth of semiconductor industry in the country. An ecosystem is being prepared for the semiconductor industry. He had told that 300 colleges have been identified to start courses on semiconductor design. Modi said that behind every industrial revolution in the world, there were people’s ambitions and he believes that India’s ambitions will be the reason for the fourth industrial revolution. Reliance Industries also plans to enter semiconductor manufacturing. For this, the company is in talks with foreign chipmakers regarding technology partnership. However, the company has not decided whether it wants to invest in this sector or not.