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Tuesday, May 30, 2023

TATA mulls over semiconductor manufacturing plans to go self reliant

The next semiconductors are listed in the Tata Group as the coffe-to-car conglomerate seeks to alleviate the pain from the global chips crisis and reduce its reliance on foreign purchases.

In addition to the chips, the team plans to make batteries for electric cars, N. Chandrasekaran, chairman of Tata Sons Pvt., Told the media at an event in Mumbai.

Chandrasekaran spoke about exploring cell and battery production relationships in India and Europe in an annual report by Tata Motors Ltd. in June.

Tata Group’s 103 billion efforts go hand in hand with Prime Minister Narendra Modi’s efforts to make India a leader in semiconductor production and reduce its reliance on foreign trade amidst global disruption disruptions. Several international corporations including Intel Corp. and Taiwan Semiconductor Manufacturing Co. are exploring India as a potential manufacturing hub, National Technology Minister Ashwini Vaishnaw said on Thursday.


Car manufacturers around the world are experiencing a shortage of semiconductor, which has exacerbated the closure of the epidemic in China, which has boosted the automotive industry and the electronics industry by increasing the installation costs for manufacturers.

“Procurement is becoming increasingly risky and uncertain,” said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles in an interview Friday. The closure of Lockdown in China has worsened the visibility of semiconductors and the move has become the next challenge for Tata Motors due to a shortage of containers, he said.

To alleviate the semiconductor problem, Tata Motors will go with the main goods, find alternatives to chips and buy them in the open market, Chandra said. He expects the shortfall to continue for at least six months and sees the fourth quarter less stable than last year.

The impact of chip shortages is “more severe” in electric vehicles than fuel models, Chandra said. The waiting period for electric motors at Tata Motors can be up to six months, compared to four months for cars with internal combustion engines, he said.


Volvo Car AB said it would be very difficult to meet its forecast for this year due to problems with the purchase of a semiconductor model, and at Renault SA earlier this month they stopped producing their new electric car due to shortages.

Tata’s intervention in the making of semiconductors will also help its team firm, Tata Motors, which is making a name for itself in the Jaguar Land Rover and has suffered from this shortfall.

Tata Motors, with a 70% stake in India’s emerging electric car market, has also announced plans to launch its first clean electric car in 2025. A five-person Avinya will not have different fuel types, Chandra told reporters at its press conference on Friday.

Tata Motors currently sells two battery-powered models, the Nexon EV and the Tigor EV, but these are also fuel-efficient models.


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