Tata Group Likely to Setup Subsidiary Semiconductor Plant in Malappuram, Kerala

Tata Group is planning to set up a subsidiary semiconductor plant in Malappuram, Kerala, as part of its ambitious ₹91,000 crore project. This project aims to boost India's semiconductor manufacturing capabilities and is expected to create thousands of jobs.

The plant in Malappuram will be a part of a larger initiative that includes a primary facility in Gujarat. Tata Group is collaborating with Taiwan-based Powerchip Semiconductor Manufacturing Corporation for this venture. The Kerala government is currently in discussions with Tata Group to finalize the setup.

This development could significantly enhance Kerala's industrial landscape and contribute to India's push for self-reliance in high-tech manufacturing.

Tata Group Chairman N. Chandrasekaran revealed this information during an interview with a leading national media outlet.

Tata Group's ambitious ₹91,000 crore (about $11 billion USD) semiconductor project is a significant step towards bolstering India's semiconductor manufacturing capabilities. The project includes setting up multiple semiconductor fabrication plants, with the primary facility in Gujarat and a subsidiary plant in Malappuram, Kerala. This initiative aims to establish a robust semiconductor ecosystem in India.

Tata Group is collaborating with Taiwan's Powerchip Semiconductor Manufacturing Corporation for this venture. This partnership is expected to bring in advanced technology and expertise to the Indian semiconductor landscape.

The project is expected to create thousands of jobs and significantly contribute to the local economies of Gujarat and Kerala. It aligns with the Indian government's vision of self-reliance in high-tech manufacturing.

Tata Group is also establishing a semiconductor assembly and test facility in Jagiroad, Assam. This greenfield project, with an investment of ₹27,000 crore, will focus on key technologies like Wire Bond, Flip Chip, and Integrated Systems Packaging (ISP). The facility aims to serve global markets in automotive, mobile devices, AI, and other segments. The semiconductor plant is slated to become operational in 2025

By investing heavily in semiconductor manufacturing, Tata Group is positioning itself as a key player in the global semiconductor supply chain. This move is crucial given the increasing demand for semiconductors in various industries, including electronics, automotive, and telecommunications.

Recently, Tata Group and Analog Devices Inc (ADI), a global semiconductor leader, announced a collaboration involving Tata Electronics, Tata Motors, and Tejas Networks signing a Memorandum of Understanding (MoU) to explore potential cooperative manufacturing opportunities.

Notably, the Modi-led central government of India is providing substantial incentives and support for this project as part of its broader India Semiconductor Mission. This includes financial incentives, infrastructure support, and policy frameworks to facilitate the growth of the semiconductor industry in India.

This project is a major milestone for India's tech industry and could pave the way for more such investments in the future.
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