Tata Electronics eyes semiconductor fabrication unit acquisition in Malaysia: Report
New Delhi: Tata Electronics is exploring the acquisition of a semiconductor fabrication or outsourced semiconductor assembly and test (OSAT) facility in Malaysia as part of its strategy to build technical know-how and talent before formally launching chip assembly and packaging operations in India, The Economic Times has reported.
The Tata Group firm is said to be in talks with several global semiconductor companies, including X-Fab, DNeX, and Globetronics, as it evaluates options for its first overseas semiconductor asset.
The move is aimed at fast-tracking the company’s capabilities in chip packaging and testing — a critical segment of the semiconductor supply chain that India is looking to develop domestically.
The initiative is being led by KC Ang, who recently took charge as president and head of Tata Semiconductor Manufacturing.
Ang brings with him more than three decades of experience in the foundry business and had previously held leadership roles at Global Foundries, including as president of its Asia operations and chairman of its Chinese arm, where he spent over 15 years.
Tata Electronics has already committed major investments towards semiconductor manufacturing in India.
The company plans to invest ₹91,000 crore in a greenfield chip fabrication unit in Dholera, Gujarat. It also intends to pump in ₹27,000 crore to set up an OSAT plant in Morigaon, Assam, according to the report.
By acquiring an operational facility in Malaysia — a country with an established semiconductor ecosystem — Tata Electronics hopes to deepen its practical understanding of the industry and tap into an existing skilled workforce before replicating such capabilities on Indian soil.
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