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 the private sector have taken steps to manufacture semiconductors in the country. In this series, the Tata group has tied up with American semiconductor manufacturer Analog Devices. Tata Electronics, a semiconductor company of the Tata group, has planned to invest $11 billion to build a laboratory in Dholera, Gujarat.

This agreement with Analog Devices has been done by Tata Electronics, Tata Motors and Tejas Networks. Tata Electronics will also invest three billion dollars in a plant in Jagirroad, Assam for assembling and testing semiconductor chips. Tata Electronics and Analog Devices will explore the possibility of manufacturing the American company’s products in the laboratory in Gujarat. Tata Motors plans to take help from Analog Devices in electronic hardware components for energy storage solutions and power electronics in its passenger and commercial vehicle business.

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

Prime Minister Narendra Modi’s goal is 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 estimated to reach $63 billion by 2026. The demand for semiconductors has increased rapidly in the last few years. However, the supply is very low in comparison. This will be Adani Group’s entry into a new segment. Due to tension between the US and China, the semiconductor segment is changing. Recently, during Prime Minister Narendra Modi’s visit to Singapore, both 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 sale of the international chip market can reach around $588 billion.