From Hosur to Dholera, Tata Electronics is Piecing India’s Chip Puzzle
Tata Electronics is quietly but deliberately building the foundations of a semiconductor revolution across India. From Tamil Nadu to Assam, the company is laying down factories, foundries, and partnerships as it positions itself as a major player in the country’s chip-making ambitions. In a sector long dominated by foreign players and marked by global supply disruptions, Tata’s push is seen as a critical step in India’s drive to reduce dependence on imported chips and accelerate the India Semiconductor Mission (ISM). This goes beyond with increasing numbers of national facilities, from precision manufacturing hubs in southern India to upcoming semiconductor units in the northeast and west. This expansion also comes as India faces rising pressure due to global supply chain disruptions and shifting geopolitical alignments. It All Began in Tamil Nadu The journey started in Tamil Nadu, where Tata Electronics has made significant investments in Hosur and Chengalpattu. The plants in Hosur are one of the earliest and most visible, specialise in electronics manufacturing services (EMS), producing high-precision components and establishing Tata’s expertise in clean-room manufacturing. The plants here have garnered attention for their workforce policies, especially their emphasis on female employment. It’s not just about machinery and silicon; it’s also about reshaping local employment patterns for women in a traditionally underrepresented sector. Tata also has a keen interest in Karnataka, Tamil Nadu’s neighbouring state. In Kolar’s Narasapura, the Tata Electronics Systems Solutions (TESS) unit furthers the group’s ambitions in integrated electronics systems and component manufacturing. Moreover, corporate offices in Bengaluru, which house R&D and support functions, add to the backend strength. Silicon Dreams in Gujarat and Assam Tata’s southern base is only one part of the larger picture. The company’s announcement of a semiconductor fabrication plant in Gujarat’s Dholera marks its entry into the core of chip manufacturing—the fab units. These are complex, capital-intensive, and essential to national security, making Tata’s commitment here a significant strategic move. The Dholera chip plant, built in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies, US-based Synopsys, and Japan’s Tokyo Electron Limited (TEL), brings together global expertise. It supports technology transfer, equipment supply, workforce training, and chip design. The project aims to manufacture AI-enabled chips and display semiconductors, strengthening India’s position in the global semiconductor ecosystem. Simultaneously, Tata Electronics plans a semiconductor assembly and test facility in Jagiroad, Assam, with an investment outlay of ₹27,000 crore. These facilities are crucial in the chipmaking process, where silicon wafers are tested, packaged, and prepared for real-world use. These eastern and western expansions not only balance Tata’s geographic footprint but also reflect broader governmental pushes to spread industrial development across India. In addition, Tata has established offices across major Indian metros, such as Mumbai and Bengaluru, serving as nodal points in what appears to resemble a decentralised network with smaller operational hubs. States like Andhra Pradesh and Odisha are also receiving investments from other giants like Reliance. Partnerships Signal Bigger Goals While the infrastructure rollout is substantial, the group’s semiconductor ambition isn’t unfolding in isolation. For example, through the Synopsys partnership, Tata aims to enable AI-powered factory automation at its upcoming fab. It underscores the blend of traditional manufacturing expertise with automation and AI. The company also made headlines for starting chip exports, marking a significant milestone for a nation that has long imported nearly all its semiconductor requirements. The first outbound shipments, though modest, symbolise a new phase in India’s industrial trajectory. Reports have also emerged of a supply partnership with Tesla for semiconductor chips, indicating growing relevance in international supply chains. Leadership changes reinforce this momentum. The appointment of KC Ang, a veteran in semiconductor manufacturing, to lead the group’s chip efforts brings credibility and operational experience to what is still a developing domestic industry. Moreover, KASTECH Equipments, a subsidiary of KAS Group, is set to provide equipment to build chips in the fab in Dholera. In an earlier discussion with AIM, MD Manjunath Jyothinagara highlighted the importance of robust equipment management in India’s semiconductor revolution. The Quiet Race is On The timing of Tata Electronics’ moves is no coincidence. India’s semiconductor policy, launched in 2021, is designed to offer capital support and incentives to players willing to set up chipmaking operations domestically. Geopolitical friction involving Taiwan and China, along with supply bottlenecks in the post-pandemic era, has made semiconductor self-reliance a global concern. By entering early and spreading risk across multiple states, Tata is positioning itself as a backbone for India’s chip ecosystem. Its facilities and offices are committed to end-to-end capabilities in electronics and chip manufacturing. India has long aspired to be a serious player in the semiconductor value chain. With Tata Electronics stepping up, that aspiration is beginning to take shape. It’s still early, and the road to a full-fledged chip ecosystem is long and costly. But if location is strategy, Tata’s blueprint is already well underway.
The journey started in Tamil Nadu, where Tata Electronics has invested in Hosur and Krishnagiri.
The journey started in Tamil Nadu, where Tata Electronics has invested in Hosur and Krishnagiri.
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