India to Emerge as a Major Semiconductor Hub, Says Tata Sons Chairman

Semiconductors will play a crucial role in shaping India’s future, Tata Sons Chairman N. Chandrasekaran has said. He noted that India’s skilled talent pool, large domestic market and international partnerships could position the country as a major hub in the global semiconductor supply chain. Amid geopolitical tensions, the artificial intelligence boom, raw material pressures and supply chain disruptions, businesses must prioritise long-term resilience. Chandrasekaran also stressed the importance of global partnerships to access advanced technologies while carefully managing energy requirements. He said Tata Group’s semiconductor investments should be assessed based on their strategic significance and long-term potential rather than on whether they meet financial targets within the next two to three years.

Chandrasekaran emphasised that companies should evaluate market demand and financial viability before adopting the most advanced chip manufacturing technologies. Investments must be commercially sustainable and capable of generating stable employment over the long term. As part of its semiconductor expansion, Tata Electronics is setting up a fabrication plant in Dholera, Gujarat, with an investment of around ₹91,000 crore in partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corporation. The facility is expected to manufacture chips for automobiles, mobile devices, electronics, artificial intelligence and other industrial applications. Tata Electronics is also developing a semiconductor assembly and testing facility in Assam with an investment of ₹27,000 crore. These projects form part of the Tata Group’s broader strategy to expand its presence in advanced manufacturing, electronics and battery technologies.