Tata Electronics Planning To Get Into Semiconductor Packaging

Last Updated on May 4, 2022 by Anu Joy

Tata Electronics is reported to be in discussions with major global semiconductor businesses and Outsourced Semiconductor Assembly and Test (OSAT) vendors about expanding into sophisticated semiconductor packaging. At the moment, third-party Integrated Circuit-packaging and testing services are provided by OSAT suppliers.

According to Raja Manickam, Chief of Tata Electronics’ OSAT unit, four states—Tamil Nadu, Karnataka, Telangana, and Odisha—have been scouted as potential locations for the facility. In addition, Tata Electronics already operates a factory in Hosur, Tamil Nadu.

Manickam says that the company is only looking for a technology partner for advanced packaging and not traditional packaging, which he described as the other component of the packaging business. He went on to say that traditional packaging is a high-volume industry that Tata Electronics requires partners for, despite the fact that the company is completely capable of managing it on its own.

Advanced packaging enables semiconductor makers to combine old and cutting-edge chips in a single integrated system for applications that require both, thus lowering prices. This technology, known as heterogeneous integration, allows corporations to combine numerous smaller chips rather than producing a single giant chip. Larger chips frequently have poorer yield, with the loss typically increasing with chip size, hence heterogeneous integration can provide significant cost savings.

The government has announced a $10 billion (₹76,000 crore) strategy to lure chipmakers from around the world to set up shop in India. Three consortiums have applied for incentives to produce chips and construct up a fab, including Vedanta-Foxconn, ISMC, and IGSS Venture. Tata Electronics, on the other hand, has stated that it will only focus on semiconductor packaging for the next ten years since it sees a lot of promise in this market.

Apart from this, Tata Electronics signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to establish a factory for manufacturing mobile components at Krishnagiri, with an investment of ₹4,684 crore.