Tata is making significant strides in the semiconductor industry, integrating AI and automation into its manufacturing processes while also beginning to export semiconductor chips, marking a pivotal shift for India's industrial landscape.

The company is focused on establishing a comprehensive semiconductor manufacturing ecosystem across India, aiming to reduce reliance on imported chips and bolster the India Semiconductor Mission.

In Assam, Tata plans to invest ₹27,000 crore in a semiconductor assembly and test facility, which will be crucial for preparing silicon wafers for practical applications.

Additionally, Tata is developing a semiconductor fabrication plant in Dholera, Gujarat, in collaboration with global partners such as Taiwan's Powerchip and US's Synopsys, targeting the production of AI-enabled chips and display semiconductors.

The company has heavily invested in factories and foundries, starting its journey in Tamil Nadu's Hosur and Chengalpattu, with a focus on electronics manufacturing services and clean-room manufacturing expertise.

Notably, Tata's factories in Hosur are recognized for their progressive workforce policies that promote female employment in the traditionally male-dominated electronics sector.

To support its expansion, Tata is establishing a decentralized network with offices in major cities like Mumbai and Bengaluru, ensuring a balanced geographic footprint.

Leadership changes, including the appointment of semiconductor veteran KC Ang, enhance Tata's credibility in the chip sector.

These initiatives align with India's 2021 semiconductor policy, which incentivizes domestic chip manufacturing in response to global supply chain challenges.

Recent reports also indicate a supply partnership with Tesla for semiconductor chips, underscoring Tata's growing role in global supply chains.