In recent years, the India government's support for the semiconductor industry has been unprecedented, and Prime Minister Modi has set a goal of increasing the output value of the electronics industry to $500 billion by 2030. To achieve this grand vision, the India government has launched a series of supportive policies, including direct subsidies, tax incentives and R&D support, to attract domestic and foreign companies to invest in the semiconductor industry. The implementation of these policies is expected to greatly promote the rapid development of India's semiconductor industry.
Recently, United States chipmaker Analog Devices, Inc. (ADI) and India's Tata Group announced a strategic alliance to explore opportunities to produce semiconductor products in India. Tata Electronics, a subsidiary of the Tata Group, plans to invest $14 billion to build two factories in India: Dholera, Gujarat, which will be India's first semiconductor wafer fab with a total investment of $11 billion; Another chip assembly and test plant in Jagiroad, Assam, with a $3 billion investment.
The goal of this collaboration is to build a strong electronics manufacturing ecosystem in India to meet the needs of the domestic and global markets. Tata Electronics and ADI will explore the possibility of manufacturing ADI products at these facilities. In addition, Tata Motors and Tejas Networks plan to use ADI's products in their electric vehicle and telecommunications infrastructure. This marks an important step forward for India in the field of semiconductor manufacturing and is in line with the strategic goal of the India government to promote the development of the domestic semiconductor industry.
Figure: Tata and Analog Devices announce partnership (Source: ETtech)
Details of the specific products of the collaboration have not yet been announced, but the alliance will undoubtedly strengthen India's position in the global semiconductor supply chain and could boost local high-tech jobs. The India government has been promoting the development of the domestic semiconductor industry, aiming to reduce dependence on foreign chipmakers and increase the self-sufficiency of the domestic industry. This collaboration is an important step towards India's goal of becoming a global semiconductor manufacturing hub.
In partnership with the Tata Group, Analog Devices will explore the possibility of manufacturing ADI products at these facilities. This strategic alliance will not only enable ADI to expand its global manufacturing network, but also provide the Tata Group with advanced semiconductor technology and management experience. Tata Motors and Tejas Networks plan to use ADI's products in their electric vehicle and telecommunications infrastructure, which will further boost India's development in areas such as smart cars and 5G network technologies.
N Chandrasekaran, Chairman of Tata Sons, said: "Tata Group is committed to driving the thriving semiconductor industry in India. We are excited to partner with Analog Devices across the semiconductor value chain and explore collaboration between Analog Devices and the Tata Group of Companies to design and deliver advanced products to serve our customers."
Vincent Roche, CEO and Chairman of Analog Devices, said, "Analog Devices is pleased to join forces with Tata Group to advance the semiconductor ecosystem in India. This partnership is in line with our commitment to innovation and sustainability in the region. By combining our real-world semiconductor solutions and software expertise with Tata's vision and capabilities, we can accelerate the development of cutting-edge technologies, from electric vehicles to next-generation network infrastructure. Together, we're not only building a stronger semiconductor ecosystem, but we're also shaping the future of global electronics manufacturing.”
