The Tata Group plans to expand its presence in the electronics and semiconductor business, The Economic Times (ET) reported. The conglomerate is looking for land close to its electronics manufacturing plant in Krishnagiri, Tamil Nadu, the report said.
As a part of the expansion plan, Tata will likely broaden the range of mobile components it manufactures. It may also set up an outsourced semiconductor assembly and test (OSAT) unit, the report quoted people aware of the development.
Tata Electronic's expansion plans are being seen as an extension of its ongoing acquisition of Wistron's iPhone manufacturing unit in Karnataka's Kolar district. Quoting people aware of the development, ET reported that Tatas are looking for land at another location in Tamil Nadu.
The report quoted a person in the know as saying, "Now that they (Tata Group) are taking over the Wistron plant, they could even be getting into the assembly as well but at the moment we are not sure if they will do more components manufacturing or assembly in Tamil Nadu."
Tata Electronics is a subsidiary of the Tata Group. It signed a memorandum of understanding (MoU) with the Tamil Nadu government in 2021 to set up the phone component manufacturing facility. The group committed an investment of Rs 4,684 crore. The facility is expected to provide employment to more than 18,000 people.
When operational, Tata Electronic's plant will be the third such manufacturing unit in Tamil Nadu. Taiwan's Foxconn and Pegatron already have their plants in the state.
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The ET report quoted Industry experts who believe that Tata Electronics' moves indicate that the group intends to enter the end-to-end semiconductor and electronics industry.