The Indian electronic sector is expected to reach $300 billion by 2025, a portion of which Tata Group will pursue through Tata Electronics.
Tata Group, which currently has 29 publicly listed companies with a market capitalization of USD 314 billion (Rs 23.4 trillion) as of December 31, 2021, may be planning a different IPO. By 2025, India's electronics market is expected to be worth USD 300 billion, and the Tata Group intends to capitalise on this growth by establishing a subsidiary called Tata Electronics Pvt Ltd. (TEPL). Established in 2020, this greenfield enterprise is based in the Krishnagiri area of Tamil Nadu and produces precision electronic components.
Tata Sons Chairman Natarajan Chandrasekaran has confirmed the company's intentions to enter the semiconductor market, which is expected to generate $1 trillion in sales worldwide by 2030, according to Business Today. The first step is to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility under Tata Electronics' umbrella. Assembling, testing, marking, and packaging (ATMP) is a vital part of the semiconductor manufacturing process since no chip may be utilised in a product until it has been through this procedure. Raja Manickam was brought on as CEO of Tata Electronics OSAT India to help with this.
Even though OSAT technology is simple to create and accounts for around 75 to 80 per cent of the market, the Tata Group may decide against investing in it. Instead, the business is looking at Advanced Packaging, a method that takes inspiration from wafer fabs and is directed by engineers. This last aspect is becoming more significance as industry heavyweights like TSMC and Intel develop increasingly sophisticated nodes. Tata Electronics, and other prospective OSATs, would need to import processed wafers from outside since India currently lacks any fabs.
Tata Electronics signed an MoU with the government of Tamil Nadu in February 2021 to establish a plant for producing mobile components. The planned Krishnagiri factory would have required an investment of Rs 4,684 crore by the firm. N Chandrasekaran, at the time, had referred to this endeavour as a "very huge undertaking in precision engineering and manufacturing" that would build up the country's potential. Meanwhile, discussions between Tata Group and Wistron have progressed to the point that the two companies may soon form a joint venture to produce iPhones in India.
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It might take anywhere from five to seven years for Tata Electronics Private Limited to be ready for an initial public offering (IPO), but business choices seldom follow a strict timeline. It's worth keeping an eye on this particular unlisted Tata Group subsidiary, Tata Electronics, because of the partnerships it will form with other, well-known companies.
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 "Photo: Reuters")
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