Tata plans $300 mn investment to set up semiconductor unit

Tata group is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit, Reuters reported.
China semiconductor industry
Tata is talking to the southern states of Tamil Nadu, Karnataka and Telangana and scouting for land for the outsourced semiconductor assembly and test (OSAT) plant.

An OSAT plant packages, assembles and tests foundry-made silicon wafers, turning them into finished semiconductor chips.

Tata group, which controls India’s top software services exporter Tata Consultancy Services (TCS) and has interests in everything from autos to aviation, plans to invest in high-end electronics and digital businesses, its Chairman N. Chandrasekaran has previously said.

Potential clients of Tata’s OSAT business include companies such as Intel, Advanced Micro Devices (AMD), and STMicroelectronics.

The factory is expected to start operations late next year and could employ up to 4,000 workers.

Separately, Tata is already building a high-tech electronics manufacturing facility in southern Tamil Nadu state.