In a strategic move, the Ratan Tata-led Tata Group has partnered with Nasdaq-listed American chip maker Analog Devices (ADI) to explore semiconductor manufacturing opportunities in India. This collaboration, announced last week, marks a significant milestone in India’s push towards self-reliance in semiconductor production.
Tata and ADI’s Major Partnership
Tata Electronics, Tata Motors, and Tejas Networks signed a Memorandum of Understanding (MoU) with Analog Devices to enhance their strategic and business cooperation. The goal of the partnership is to explore the potential for semiconductor manufacturing within India. ADI’s semiconductor products are expected to be utilized across Tata Group’s key applications, including electric vehicles (EVs) and network infrastructure.
This collaboration aligns with India’s ambitions to strengthen its semiconductor industry and make a significant contribution to the global supply chain. The Tata Group had already received approval from the Indian government to establish semiconductor assembly, testing, and fabrication facilities within the nation.
Tata’s $14 billion semiconductor investment
Tata Group, a 156-year-old conglomerate with a diverse business portfolio, has committed a massive $14 billion to establish India’s first semiconductor fabrication plant in Gujarat along with a chip assembly and testing plant in Assam. This investment reflects Tata’s dedication to building a strong domestic semiconductor ecosystem.
The construction of these plants, approved by the government earlier this year, is a key step in reducing India’s dependence on semiconductor imports while positioning the country as a significant player in the global tech industry.
Tata Sons Chairman on the New Deal
N Chandrasekaran, chairman of Tata Sons, emphasized the significance of the collaboration and restated the Tata Group’s dedication to building a prosperous semiconductor sector in India. He expressed excitement about collaborating with Analog Devices (ADI), stating, “We are eager to partner with ADI across the semiconductor value chain, exploring opportunities for collaboration between Tata Group companies and ADI to design and introduce innovative products that will serve our customers.”
However, specific details regarding which products will be manufactured in India or utilized by Tata Group remain undisclosed.
ADI’s CEO on the Partnership
Vincent Roche, CEO and Chairman of ADI shared his enthusiasm for the collaboration, remarking, “At ADI, we are thrilled to work with Tata Group to strengthen India’s semiconductor ecosystem. By leveraging our real-world semiconductor solutions and software expertise alongside Tata’s vision and capabilities, we can accelerate the development of cutting-edge technologies, from electric vehicles to next-generation network infrastructure.”
He further added that the partnership aims to not only build a robust semiconductor ecosystem but also shape the future of global electronics manufacturing.