Tata Electronics In Talks To Onboard NXP For Its Fab Plant

Tata Electronics is reportedly in discussions to onboard semiconductor design major NXP Semiconductors as its key customer.

Tata’s partnership will lead to manufacturing NXP’s offerings in its upcoming semiconductor fab plant in Gujarat and outsourced semiconductor assembly and test (OSAT) facility in Assam, ET reported, citing sources familiar with the matter.

One of the sources also confirmed that the deal is expected to mirror Tata Electronics’ last partnership with US-based semiconductor manufacturing company Analog Devices, where it is looking to start production of chips by 2026.

Tata Electronics, Tata Motors and Tejas Networks , in September last year, to explore joint opportunities in semiconductor manufacturing in India.

Back then, the Tata Group-owned company agreed to manufacture Analog Devices’ products in its upcoming semiconductor fab plant in Gujarat as well as in its OSAT facility in Assam.

While companies like NXP have their own fabs, they tend to outsource some of their production, and that is where the Tata fab and OSAT could fit in, the report said.

“They do a lot of analog chips and many of the industrial and security chips do not need the latest technology. There is also a case being made for supply chain resilience, which are all some of the reasons driving the dialogue with Tata Electronics,” a source was quoted as saying in the report.

“In the advanced node, there isn’t much of an option, but in the mature nodes, companies like NXP would see a benefit in bringing in players like Tata Electronics,” the source added.

(The story will be updated soon.)

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