Tata in Advanced Talks with NXP for Semiconductor Manufacturing
Tata Electronics is reportedly in advanced talks to bring global chipmaker NXP Semiconductors on board as a key customer for its upcoming semiconductor manufacturing facilities. According to media reports, if the deal is finalised, Tata Electronics will produce NXP’s semiconductors at its new plant in Gujarat and its OSAT (Outsourced Semiconductor Assembly and Test) facility in Assam.
This potential collaboration mirrors Tata Electronics’ earlier agreement with US-based Analog Devices, where chip production is expected to begin by 2026. Last year, Tata Electronics, along with Tata Motors and Tejas Networks, signed a Memorandum of Understanding (MoU) with Analog Devices to explore manufacturing partnerships within India.
Tata’s Gujarat and Assam plants are geared to produce legacy-node chips, which are essential for automotive electronics like ECUs (Electronic Control Units) and other specialized systems. While NXP operates its own fabs, it frequently outsources production, making Tata’s facilities a strategic fit.
Sources suggest that NXP is exploring Tata’s manufacturing capabilities for analog and industrial chips that do not require the most advanced technology nodes. The move is also seen as part of a broader push for supply chain resilience in the semiconductor industry.
This development comes amid Tata Electronics’ aggressive expansion. Recently, the company signed deals with Tesla for global chip supply and partnered with Taiwan’s Himax and PSMC for display semiconductor development. NXP has also pledged a significant R&D investment in Bengaluru over the next five years.
Source: INC42
