This partnership with Singapore, combined with the significant investments in India, marks a pivotal moment for Tata Group as it seeks to establish itself as a major player in the semiconductor industry.
Tata Sons has made a significant move in the semiconductor market by choosing Singapore as a key partner for its ambitious semiconductor plans. This strategic decision was announced by Singapore’s Minister for Home Affairs and Law, K Shanmugam, after a crucial meeting with Tata Sons Chairman, N Chandrasekaran.
Despite its relatively small size of just 670 square kilometers, Singapore plays a substantial role in the global semiconductor industry. The country is home to 25 semiconductor foundries, contributing to 20% of the world’s semiconductor equipment production. Although these foundries may not be the most advanced on a global scale, Shanmugam emphasized their importance in the industry.
Tata Sons will choose Singapore as a “key partner” for its semiconductor plans, a senior minister from the city-state said on Friday.
Speaking to reporters after a meeting with Tata Sons Chairman N Chandrasekaran earlier in the day, Singapore’s minister for home affairs and law K Shanmugam said semiconductors was a “big discussion” point during the meeting.
Singapore Minister On Tata’s New Plan
“‘If they (Tatas) want to, they can do business with anybody in the world. It’s not that they need to do it in Singapore, but they will, I think, choose Singapore as a key partner, not only partner, but as a key partner,” Shanmugam said.
Shanmugam, along with minister for manpower and second minister for trade and industry Tan See Leng, is on a day-long visit to the financial capital.
The South East Asian country is a “serious and reliable player” in the international semiconductor industry, he said, adding that the Tata Group has been present in Singapore for over five decades.
Singapore or entities based in the country command a 20 per cent share in the semiconductor equipment production globally, the visiting minister said.
Tata Group’s Massive Investment In Semiconductor Business
Notably, the Tata Group has ambitious plans on the semiconductor manufacturing front which include investment of Rs 91,000 crore for a facility in Gujarat and Rs 27,000 crore for another in Assam. It has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) for the venture.
In addition to collaborating with Singapore, Tata Group is making substantial investments in semiconductor manufacturing within India. They have committed Rs 91,000 crore (approximately $11 billion) for a facility in Gujarat and another Rs 27,000 crore (around $3.3 billion) for a plant in Assam. These projects are part of Tata’s broader strategy to bolster India’s semiconductor capabilities.
For these initiatives, Tata is partnering with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), a move that signifies a strong collaboration between Indian and Taiwanese semiconductor expertise.