The Tata Group is in talks to set up a USD 300 million semiconductor plant in India, Reuters reported, citing different sources. The group is talking to the southern states of Tamil Nadu, Karnataka and Telangana. It is also looking for land for the outsourced semiconductor assembly and test (OSAT) plant which would package, assemble and test foundry-made silicon wafers, turning them into finished semiconductor chips.
A venue could be fixed upon by next month, a source said, adding that "while they (Tata) are very strong on the software side of things ... hardware is something they want to add to their portfolio, which is very critical for long-term growth." Tata and the three states did not respond to requests for comment.
The factory is expected to start operations late next year and could employ up to 4,000 workers, the source said, adding availability of skilled labour at the right cost was key to the long-term viability of the project.
Separately, Tata is already building a high-tech electronics manufacturing facility in southern Tamil Nadu state.
