Latest news with #TataElectronics
Time of India
19 hours ago
- Business
- Time of India
Tata Electronics eyes Malaysia foray via chip fab acquisition
Tata Electronics is in talks with several global semiconductor companies including X-Fab , DNeX and Globetronics to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia, according to people in the know. The move is aimed at bolstering the Tata Group company's knowledge and talent base before entering the semiconductor assembly and packaging business in India. KC Ang, who was appointed president and head of Tata Semiconductor Manufacturing in April this year, is driving these acquisition efforts, the people said. 'Globetronics and DNeX's SilTerra facility are among the front runners to be acquired by Tata Electronics,' said one of the people. Tata Electronics is investing more than Rs 91,000 crore to set up a semiconductor fab unit at Dholera, Gujarat, and Rs 27,000 crore in an OSAT facility at Assam's Morigaon. "Running a fab is not going to be simple and Tata Electronics is aware of that," a second person said. "These potential acquisitions are being explored in Malaysia because it is one of the most economical options and talks have been going on with different players since April this year,' this person said. 'For the Tatas, it represents an opportunity to get the knowhow on how to run a fab or advanced packaging facility while also providing a training ground for Indian talent to learn how to run these high-tech facilities." Queries sent to Tata Electronics, X-Fab, DNeX and Globetronics remained unanswered as of press time Monday. Semicon hub Malaysia's expertise in assembly, testing, marking and packaging (ATMP) along with its mature ecosystem, abundant skilled workforce, robust supply chain and government support make it a preferred destination, according to analysts. "If Tata were to have a partnership or presence in Malaysia, it would enable Tata to develop expertise in ATMP, and it would complement the wafer fabrication and OSAT (operations) in India," Counterpoint Research senior analyst Parv Sharma said. 'It would also de-risk Tata from current semiconductor tariffs and provide a risk-free supply chain to serve a wider customer base globally," he added. Also, the Malaysian government's National Semiconductor Strategy, announced in May 2024, offers a significant incentive structure to attract investments. Indian companies are aiming to acquire manufacturing grade technology (MGT) from Malaysia for OSAT projects in particular, as it is the longstanding hub for both legacy and advanced packaging. "MGT can only come from an established player in the semiconductor industry who has IP defensibility for its technology and has the legal rights to license it to India," consultancy firm Fab Economics' CEO Danish Faruqui said. Malaysia holds 13% of the global market for chip packaging, assembly and testing services, as per a February 18 report by the Malaysian Investment Development Authority. Ripe for acquisition Typically, semiconductor businesses that are financially stressed and are looking to get a boost by licensing technology and/or expanding packaging capacity with new partners, are the most preferred targets by Indian players. "Globetronics, an OSAT player from Penang, Malaysia, has suffered multiple financial blows as recently as in 2024,' said Faruqui. Key public and private stakeholders had rolled back their positions in the company, necessitating boardroom changes and strategies for new partnerships and revenue streams, he added. As per Fab Economics, DNeX's SilTerra facility in Kulim is also being deemed a 'lucrative target' for Indian players for low-cost, high-fidelity technology licensing on the fabrication side. SilTerra is a semiconductor wafer foundry offering fabrication and design support services for integrated chips in various technologies. DNeX acquired a 60% stake in SilTerra in 2021 while the remaining 40% was acquired by Beijing-based Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Centre (CGP Fund), which is a Chinese investment fund focused on the semiconductor industry. The total acquisition cost was 273 million Malaysian ringgit (about $64 million now). X-Fab is a German specialty foundry group that has six wafer fabs located in Malaysia, Germany, France and the US. Located in Kuching, the capital city of Sarawak, the X-Fab facility in Malaysia manufactures wafers on modular CMOS technologies in geometries ranging from 350 nm to 180 nm. CMOS (Complementary Metal-Oxide-Semiconductor) is a type of technology used in computer processors, memory chips, and other electronic components.
Time of India
a day ago
- Business
- Time of India
Tata Electronics eyes Malaysia foray via chip fab acquisition
Tata Electronics is in talks with several global semiconductor companies including X-Fab , DNeX and Globetronics to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia, according to people in the know. The move is aimed at bolstering the Tata Group company's knowledge and talent base before entering the semiconductor assembly and packaging business in India. KC Ang, who was appointed president and head of Tata Semiconductor Manufacturing in April this year, is driving these acquisition efforts, the people said. 'Globetronics and DNeX's SilTerra facility are among the front runners to be acquired by Tata Electronics,' said one of the people. Tata Electronics is investing more than Rs 91,000 crore to set up a semiconductor fab unit at Dholera, Gujarat, and Rs 27,000 crore in an OSAT facility at Assam's Morigaon. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký "Running a fab is not going to be simple and Tata Electronics is aware of that," a second person said. ETtech Live Events "These potential acquisitions are being explored in Malaysia because it is one of the most economical options and talks have been going on with different players since April this year,' this person said. 'For the Tatas, it represents an opportunity to get the knowhow on how to run a fab or advanced packaging facility while also providing a training ground for Indian talent to learn how to run these high-tech facilities." Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Queries sent to Tata Electronics, X-Fab, DNeX and Globetronics remained unanswered as of press time Monday. Semicon hub Malaysia's expertise in assembly, testing, marking and packaging (ATMP) along with its mature ecosystem, abundant skilled workforce, robust supply chain and government support make it a preferred destination, according to analysts. "If Tata were to have a partnership or presence in Malaysia, it would enable Tata to develop expertise in ATMP, and it would complement the wafer fabrication and OSAT (operations) in India," Counterpoint Research senior analyst Parv Sharma said. 'It would also de-risk Tata from current semiconductor tariffs and provide a risk-free supply chain to serve a wider customer base globally," he added. Also, the Malaysian government's National Semiconductor Strategy, announced in May 2024, offers a significant incentive structure to attract investments. Indian companies are aiming to acquire manufacturing grade technology (MGT) from Malaysia for OSAT projects in particular, as it is the longstanding hub for both legacy and advanced packaging. "MGT can only come from an established player in the semiconductor industry who has IP defensibility for its technology and has the legal rights to license it to India," consultancy firm Fab Economics' CEO Danish Faruqui said. Malaysia holds 13% of the global market for chip packaging, assembly and testing services, as per a February 18 report by the Malaysian Investment Development Authority. Ripe for acquisition Typically, semiconductor businesses that are financially stressed and are looking to get a boost by licensing technology and/or expanding packaging capacity with new partners, are the most preferred targets by Indian players. "Globetronics, an OSAT player from Penang, Malaysia, has suffered multiple financial blows as recently as in 2024,' said Faruqui. Key public and private stakeholders had rolled back their positions in the company, necessitating boardroom changes and strategies for new partnerships and revenue streams, he added. As per Fab Economics, DNeX's SilTerra facility in Kulim is also being deemed a 'lucrative target' for Indian players for low-cost, high-fidelity technology licensing on the fabrication side. SilTerra is a semiconductor wafer foundry offering fabrication and design support services for integrated chips in various technologies. DNeX acquired a 60% stake in SilTerra in 2021 while the remaining 40% was acquired by Beijing-based Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Centre (CGP Fund), which is a Chinese investment fund focused on the semiconductor industry. The total acquisition cost was 273 million Malaysian ringgit (about $64 million now). X-Fab is a German specialty foundry group that has six wafer fabs located in Malaysia, Germany, France and the US. Located in Kuching, the capital city of Sarawak, the X-Fab facility in Malaysia manufactures wafers on modular CMOS technologies in geometries ranging from 350 nm to 180 nm. CMOS (Complementary Metal-Oxide-Semiconductor) is a type of technology used in computer processors, memory chips, and other electronic components.
Time of India
2 days ago
- Business
- Time of India
Tata to fuel new ventures engine with ₹30,000 crore more, to hire new digital CEO soon
Mumbai: Tata Sons is injecting fresh capital of ₹30,000 crore ($3.5 billion) into its emerging ventures, including Tata Digital , Tata Electronics and Air India , as well as the defence and battery units. The investment will be through equity infusion, said people familiar with the matter. The defence business has recently been reaffirmed as a strategic priority, according to officials. The Tata Sons board approved the latest allocation at a meeting held on Thursday, said the people cited. This funding will be in addition to the $120 billion committed to new businesses in recent years. "The capital infusion is considered part of the holding company's plan to meet requirements at the execution level, necessary to scale the new businesses for their next phase of growth," said a group executive. Announcement of New Tata Digital CEO Soon 'A sizeable commitment has already been made by Tata Sons. Now, all further investments will be done on a priority basis and new businesses will have to earn the right to seek such investments,' the executive said. These businesses are big focus areas and Tata Sons is of the view that their gestation period is over, and it's time for them to prioritise execution and deliver profitable growth. It's seen as a strategic effort to maintain the group's long-term competitive edge in a rapidly changing global business landscape, amid disruptions driven by artificial intelligence (AI) and other emerging technologies. Tata Electronics and Tata Digital already figure in the top 10 group businesses. 'The goal for the new businesses is to rank among the top five group companies by revenue and attain profitability by FY27. Group chairman (N Chandrasekaran) is now keeping close track of the progress of the new businesses,' an executive said. The holding company will also soon announce a new chief executive for Tata Digital, which has faced challenges, including the recent exit of Naveen Tahilyani as CEO within a year of taking the top job. In a move to sharpen his focus on these priorities, Chandrasekaran recently stepped down from the board of Tata Chemicals. Chandrasekaran, 62, took charge as Tata Sons chairman in February 2017 and got another five-year term at the helm in 2022. How It's Faring After strong gains during 2020-24, Tata Group companies hit speed breakers in FY25. Revenue growth slowed to 4.9%, down from 12% in FY24. Net profit rose 10.7%, a sharp slump from the 28% surge the year before. Operating margins held steady at 10%, compared with 11% in FY24. Some of the businesses have been cyclical, apart from the uncertain geopolitical situation and economic challenges impacting growth, said people with knowledge of the matter. While group debt declined 6% to Rs 3 lakh crore in FY25, over half the companies still posted double-digit topline growth, signalling underlying resilience. Tata Consultancy Services (TCS) remained the group profit engine. It contributed 51% of group net profit, though down from 54%. Despite operational stability, investor sentiment was less positive. The group lost nearly 8% of its market capitalisation in FY25, after a 45% gain in FY24. The latest infusion is being routed through equity since Tata Sons voluntarily surrendered its certificate of registration with the Reserve Bank of India (RBI) last year and repaid more than Rs 20,000 crore in debt to remain unlisted.
India.com
2 days ago
- Business
- India.com
Noel Tata's BIG plan, will inject Rs 300000000000 in…, will soon hire…
Tata Sons is set to infuse Rs 30,000 crore ($3.5 billion) in fresh capital into its growing ventures like Tata Digital, Tata Electronics, Air India, and also in its defence and battery businesses. The investment will be done through equity infusion, according to the Economic Times report. It will lead their next phase of growth. This investment is approved by the board, as an addition to the earlier plan of $120 billion. 'The capital infusion is considered part of the holding company's plan to meet requirements at the execution level, necessary to scale the new businesses for their next phase of growth,' said a group executive to Economic Times The report also claimed that the announcement of New Tata Digital CEO will be made by the company soon. These businesses are part of big sectors. Tata Electronics and Tata Digital already figure in the top 10 group businesses. Tata Sons thinks that their gestation period is now over, and now they need to focus on execution and profitable growth. Group chairman (N Chandrasekaran) is now keeping close track of the progress of the new businesses as reported by ET. Tata Digital faced challenges after the exit of Naveen Tahilyani as CEO within a year of him taking the top job. So now Tata Sons will soon announce a new chief executive for this company. In a move to sharpen his focus on these priorities, Chandrasekaran recently stepped down from the board of Tata Chemicals. Chandrasekaran, 62, took charge as Tata Sons chairman in February 2017 and got another five-year term at the helm in 2022. In a similar move, Tata Sons Chairman N Chandrasekaran stepped down as chairman and director of Tata Chemicals on May 29, a regulatory filing said. The board of directors have appointed S Padmanabhan, Director of the Company, as the Chairman of the Board with effect from May 30, 2025. Besides, based on the recommendations of the Nomination and Remuneration Committee, the board appointed Modan Saha as an Additional Director (Non-Executive, Non-Independent) with effect from May 28, 2025. (With inputs from PTI)
Time of India
27-05-2025
- Automotive
- Time of India
Assam unveils ₹25,000 crore plan to push electronics manufacturing
The Assam government Monday unveiled a ₹25,000-crore scheme to boost electronics manufacturing in the state with a major share earmarked for incentivising component makers, chief minister Himanta Biswa Sarma to ET, Sarma also said Assam—picked by Tata Electronics for setting up a ₹27,000 crore chip assembly and test plant—will give 60% incentive to component makers beyond the Union government grant. Incentive will be enhanced depending on the investment Tata facility in Jagiroad, Assam, is expected to start operations by March-April next year, Sarma said, adding that the state government is also building a Ratan Tata Electronics City. 'Tata project has opened our eyes, and we realised that we have an advantage in electronics, and other related areas. So, we have quickly come out with the policy on electronics component manufacturing following the central government initiative. Now we are hoping that we will be able to do something more,' he said. The state government scheme offers production-linked incentives as well as capital subsidy. 'Over the next one or two years, I think we'll be able to negotiate more and more industries (to come in),' Sarma said. Highlighting that Assam offers more fiscal benefits than other states, he said this will allow industries to avail multiple schemes. Benefits include the Union government's scheme, Assam's own incentives, as well as the Centre's 'Unnati' benefits package for the Northeast that includes interest subvention, and power and tariff incentives. 'We are ready to negotiate more if we get a very good proposal,' Sarma said. This March, the Union cabinet had approved a ₹ 23,000 crore programme to further bolster the country's electronics manufacturing supply chain. The Electronics Component Manufacturing (ECM) Scheme—spanning six years—is expected to generate investments worth ₹ 60,000 crore. The scheme would seek to increase domestic value addition and integrate local companies with global value chains. This is just the beginning, Sharma noted after meeting electronics industry leaders in New Delhi. The chief minister is preparing to hold similar industry meetings in Mumbai, Bengaluru, and Chennai over the next three months to gauge interest from companies. On tariff uncertainties sparked by the Trump administration, Sarma said this phase will pass soon as India's discussions on a free trade agreement (FTA) with the US are progressing well. States are ready to take advantage of any FTA, he added. Sharma emphasised that setting up of the Tata Electronics plant in Assam is a 'natural advantage' for the state. 'Whatever (components) Tata requires, or whatever can go along with be able to realise more and more where Assam fits into (this) but it is a huge area,' he said, adding chip requirements for the local and global markets will become clear by next year when India's existing facilities become operational. He expressed the hope that many youngsters who migrated to other states for work will return to Assam as new industries open. 'We were producing human resources, but not for us,' Sarma said. 'When the industry started to materialise, and they have actually started working, we realised that there is a lot of manpower in Assam spreading across various states - in Tamil Nadu, in Karnataka. We realised that we have huge potential.'
