Tata Sons Chairman, Mr. Natarajan Chandrasekaran has confirmed on Thursday about the plan to enter into the semiconductor business. Tata Group, under Tata Electronics Private Limited (TEPL), will set up an Outsourced Semiconductor Assembly and Test (OSAT). OSAT, also referred to as assembly, testing, marking, and packaging (ATMP) units and its a crucial part of semiconductor manufacturing. The silicon chips made at the foundries get tested and packaged before they are shipped in OSAT unit. Mr. Raja Manickam was appointed as the CEO of Tata Electronics OSAT India in 2021 .Almost after one year the company has confirmed about venture in OSAT.
The Tata Group intends to invest $90 billion in the space of electronics and display manufacturing across the group companies over the next five years. They plan to enter Chip manufacturing in a few years. Tata Electronics will have to partner with a company that can transfer an existing, in-production technology. However, the group's other option is to develop the technology in-house and that will take long time and the process is not really easy.
In June this year, two Tata Group companies - Tata Motors Ltd. (TML) and Tejas Networks Ltd. entered a strategic partnership with (Tejas)Japanese semiconductor manufacturer Renesas Electronics Corporation. Renesas Electronics Corporation is a premier supplier of advanced semiconductor solutions. This strategic partnership is focused on developing semiconductor solutions for automotive, IoT, and 5G Systems. Renesas and Tata Consultancy Services Limited (TCS) will also establish a Joint System Solution Development Center in Bangalore to focus on system solutions for the IoT, Infrastructure, Industrial and Automotive segments. Tata Group is one of the most trusted brand in India and since they have entered the Semiconductor sphere, its a great sign for us.
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