Tatas into semiconductor assembly soon

Hyderabad At a time when the world is facing the semiconductor crisis, Tata Group has come forward to invest up to $300 million to set up semiconductor assembly and test (OSAT) unit. The company is in talks with southern States of Tamil Nadu, Karnataka and Telangana and also in search for a land for the plant. While Tata has previously said it would likely enter the semiconductor business, this is the first time news about the group's foray into the sector and its scale has been reported. An OSAT plant packages, assembles and tests foundry-made silicon wafers, turning them into finished semiconductor chips.

The company may lock the venue by next month as it has viewed varied locations. The source has also said that Tata being very strong at its current business, it would like to foray into a portfolio that is for long term growth

This move will help Centre's 'Make in India' drive for electronics manufacturing.

The Tata Group, which controls India's top software services exporter Tata Consultancy Services and has interests in everything from autos to aviation, plans to invest in high-end electronics and digital businesses, its Chairman N Chandrasekaran has previously said.

Potential clients of Tata's OSAT business include companies such as Intel, Advanced Micro Devices (AMD), and STMicroelectronics.

The factory is expected to kick start operations late next year and could employ up to 4,000 workers, the source said. "Once Tata starts production, the ecosystem will come around ... So it's very critical to find the right place from a labour standpoint," source said. Separately, Tata is already building a high-tech electronics manufacturing facility in southern Tamil Nadu.