Tata Group is making a major push into the semiconductor and electronics manufacturing space through its subsidiary Tata Electronics, which has set an ambitious target of becoming a $30 billion (around ₹2.8 lakh crore) business within the next five years. Riding the global shift in supply chains after the COVID-19 pandemic, the company has rapidly positioned itself as a key player in India’s emerging semiconductor ecosystem. Tata Electronics has seen explosive growth in a short span of time, scaling from an initial investment base of around ₹400 crore to an estimated revenue run rate of ₹1.3 lakh crore. The company is now valued at nearly $15 billion and has turned profitable, with an EBITDA exceeding ₹4,000 crore, marking a strong turnaround from its earlier negative earnings phase.
A major pillar of this expansion is India’s first semiconductor fabrication plant being developed in Dholera, Gujarat, with an estimated investment of ₹91,000 crore. In parallel, a ₹27,000 crore outsourced semiconductor assembly and test (OSAT) facility is being built in Assam. Government support, including subsidies covering nearly 70% of project costs, is significantly boosting the initiative. Tata Electronics has also secured partnerships with global technology leaders including Intel, Qualcomm, Bosch, and Rohm. Notably, around 70% of the capacity at the Dholera fab is already booked, reflecting strong global demand and confidence in the project.
Tata Electronics is building its growth model on three core pillars—technology, talent, and capital. It has partnered with Powerchip Semiconductor Manufacturing Corporation to reduce execution risk, while hiring experts from 16 countries to strengthen its talent base. On the technology front, it is focusing on 28nm to 130nm chip nodes, which cater to nearly 60% of global semiconductor demand. Looking ahead, Tata Electronics aims to evolve from a domestic manufacturing player into a global semiconductor leader. Alongside organic expansion, it is exploring joint ventures and acquisitions, supported by India’s Production Linked Incentive (PLI) scheme and the India Semiconductor Mission.
