Analog Devices, Tata Group sign semiconductor manufacturing deal in India

India earlier this year gave the green light to build a Tata Group semiconductor factory.

2 minutes of reading Last update: Sep 19, 2024 | 11:07 AM IST

Analog Devices (ADI) and Indian salt and aerospace conglomerate Tata Group have signed an agreement to explore semiconductor manufacturing in India, the U.S. chipmaker said on Wednesday.

Tata Electronics, part of the 156-year-old electronics group, is investing a combined $14 billion to set up India’s first semiconductor manufacturing plant in Gujarat and a chip assembly and testing facility in Assam.

India earlier this year gave the green light to build a Tata Group semiconductor factory.

Tata Electronics and ADI intend to explore options for manufacturing ADI products at Tata Electronics’ plant in Gujarat and a facility in Assam, Analog Devices said in a statement.

Prime Minister Narendra Modi is pushing India to catch up with global semiconductor giants like Taiwan, aiming to make the country a global chipmaker, despite initial setbacks.

Earlier this month, the western Indian state of Maharashtra said Adani Group and Israel’s Tower Semiconductor would invest $10 billion in the chip project. The semiconductor unit of infrastructure giant Larsen & Toubro, which designs chips for vehicles, also plans to eventually build a factory.

Under the agreement with ADI, Tata will also use the chipmaker’s products in Tata Motors’ electric vehicles and Tejas Networks’ telecom infrastructure, the companies said.

The companies did not specify what products would be made in India or what products would be used by Tata.

Global companies including NXP Semiconductors and Micron have announced plans to invest and open plants in the country.

First published: Sep 19, 2024 | 11:07 AM IST