Analog Devices and Tata Group Discuss Semiconductor Manufacturing in India, According to Reuters

Title: Analog Devices and Tata Group Team Up for Semiconductor Manufacturing in India

BENGALURU (Reuters) – Analog Devices and Tata Group, a prominent Indian conglomerate known for its diverse interests, have entered into an agreement to investigate the potential for semiconductor production in India, as announced by the U.S. chipmaker on Wednesday.

Tata Electronics, the electronics-manufacturing division of Tata Group, is committing $14 billion to develop India’s first semiconductor fabrication facility in Gujarat and a chip-assembly and testing plant in Assam.

Earlier this year, the Indian government approved the construction of this semiconductor facility as part of its broader push to strengthen domestic manufacturing capabilities.

The collaboration aims to assess the feasibility of producing Analog Devices’ products at Tata Electronics’ facility in Gujarat, as well as at the Assam site, according to a statement from the chipmaker.

This initiative aligns with Prime Minister Narendra Modi’s ambitions to establish India as a competitive player in the global semiconductor market, particularly against established producers like Taiwan, despite facing initial challenges.

In a related development earlier this month, India’s Maharashtra state announced a $10 billion investment from Adani Group and Tower Semiconductor for a semiconductor project. Additionally, Larsen & Toubro, a major infrastructure company, plans to build a factory for designing chips used in vehicles.

As part of the agreement with Analog Devices, Tata Group will integrate the chipmaker’s products into Tata Motors’ electric vehicles and Tejas Networks’ telecommunications infrastructure.

Although the specific products to be manufactured in India have not been disclosed, other international companies, including NXP Semiconductors and Micron, have also revealed plans to invest and set up operations in India.