Semiconductor Manufacturing in India to take Fast Pace, Tata Group Partners With Analog Devices to Explore Possibilities in Semiconductor Industry

In the last few months, the central government and private sector have taken steps for manufacturing of semiconductors in the country. In this series, Tata group has tied-up with American semiconductor manufacturer Analog Devices. Tata Electronics, the semiconductor company of Tata Group, plans to invest $ 11 billion to build a laboratory in Dholera, Gujarat.

Tata Electronics, Tata Motors and Tejas Networks have signed this agreement with Analog Devices. Tata Electronics will also invest $3 billion in a plant in Jagirroad, Assam for assembling and testing of semiconductor chips. Tata Electronics and Analog Devices will explore possibilities for manufacturing the American company’s products in a laboratory in Gujarat. Tata Motors plans to seek help from Analog Devices in energy storage solutions in its passenger and commercial vehicle business and electronic hardware components for power electronics.

Tejas Networks and Analog Devices plan to manufacture electronics hardware components for network infrastructure. Earlier this month, Adani Group and Israel’s Tower Semiconductor had tied up to set up a semiconductor plant in Maharashtra. About 10 billion dollars will be invested in this project. The central government is encouraging international companies to set up manufacturing units in the country.

Prime Minister Narendra Modi aims to make the country a major power in semiconductors. The initial capacity of this semiconductor plant to be set up in Maharashtra will be 40,000 wafers. The country’s semiconductor market is expected to reach $63 billion by 2026. The demand for semiconductors has increased rapidly in the last few years. However, the supply is very less in comparison. This will be the entry of Adani Group into a new segment. The semiconductor segment is undergoing changes due to tensions between America and China. Recently, during Prime Minister Narendra Modi’s visit to Singapore, both the countries had signed an agreement to increase cooperation in chip design and manufacturing. Supply in the international chip market has been affected. India, Singapore and Malaysia can benefit from this. This year the sales of the international chip market may reach approximately $588 billion.