Analog Devices Rises on $14 Billion Tata Semiconductor Partnership
1min read On Wednesday, U.S. chipmaker Analog Devices (ADI) announced a strategic partnership with India's Tata Group to explore semiconductor manufacturing opportunities in India. This collaboration marks a significant step for ADI as it looks to expand its global footprint in the burgeoning Indian market.
Tata Electronics, a subsidiary of the Tata Group, will spearhead the investment with plans to inject $14 billion into building India's first semiconductor wafer plant in Gujarat and a chip assembly and testing facility in Assam. Earlier this year, the Indian government gave the green light to the Tata semiconductor project, underscoring the country's commitment to becoming a global semiconductor hub.
According to ADI's statement, the partnership will evaluate the potential to produce ADI products at Tata Electronics’ facilities in Gujarat and Assam. Additionally, Tata Group intends to integrate ADI’s innovations into its electric vehicles produced by Tata Motors and the telecom infrastructure provided by Tejas Networks.
The specific products that will be manufactured in India or utilized by Tata have yet to be disclosed. However, the agreement aligns with Indian Prime Minister Modi's ongoing initiative to boost the country's capabilities in the semiconductor sector, facing stiff competition from established global giants.
India has been actively seeking to develop its semiconductor ecosystem, a move evidenced by recent developments, including plans by the Adani Group and Israel's Tower Semiconductor to build a $10 billion manufacturing facility in Maharashtra. Other global corporations, such as NXP Semiconductors and Micron Technology, have also announced investments in Indian semiconductor infrastructure.
