Will the prices of smartphones, laptops, and other devices drop in the near future in India?
In July 2022, Tata group announced its first step in the semiconductor industry, when Tata group companies – Tata Motors and Tejas Networks entered a strategic partnership with Renesas Electronics Corporation, a Japanese semiconductor manufacturer.
Whereas on December 8, N Chandrasekaran, chairman of the Tata group, finally entered the sector of semiconductor manufacturing, assembly, and testing. Beginning from smartphones to EVs, semiconductor chips are required everywhere.
Looks like TATA is making a solid-state move in the tech world!
Over the next 5 years, the Tata group plans to invest about ₹7,452 billion in the semiconductor industry through its group companies. It intends to enter advanced semiconductor mfg, aka fab (or foundry), in a few years.
It is a known fact that the majority of the chips are manufactured in Taiwan and according to estimates, 90% of 5 nanometre (nm) chips are mass-produced in Taiwan, by Taiwan Semiconductor Manufacturing Company Limited (TSMC).
However, tensions between China and Taiwan have led to a global chip shortage. This has caused a radical shift, with these chip makers now focusing on expanding to East and Southeast Asia.
Moreover, a few more recent events, such as the growing tensions between the US and China, among others, point us to at least one rational conclusion: all of this is encouraging global chip makers to shift their supply location, mostly to India.
According to a few reports, India’s semiconductor market is expected to more than double between 2021 to 2026, reaching US$ 64 billion.
And both the Indian govt and Tata group are placing their bets to ensure this shift will turn India into a new hub for semiconductor technology. We’re finally ready to say goodbye to those pesky foreign chips and hello to some good old Made-in-India semiconductors.