A lot of action has been happening in the semiconductor space in India. Japanese semiconductor manufacturer Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, has entered into a strategic partnership with two Tata Group companies - Tata Motors Ltd. (TML) and Tejas Networks Ltd. (Tejas). This strategic partnership will focus on the development of semiconductor solutions for technologies across automotive, IoT and 5G Systems.
In addition, Renesas and Tata Consultancy Services Limited (TCS) will also partner by establishing a Joint System Solution Development Center in Bangalore, which will focus on comprehensive system solutions for the IoT, Infrastructure, Industrial and Automotive segments by leveraging Renesas’ semiconductor solutions and TCS’ industry experience.
Earlier Tata Group was in the news around the plans to set up a $300-million semiconductor manufacturing facility. However, the company hasn’t applied for the government’s semiconductor fab scheme until earlier this year. In October 2020, it was reported that Tata Group is investing Rs 5,000 crores to set p a phone component manufacturing plant in Tamil Nadu under a new company which has been named Tata Electronics.
“Tata group is slowly but steadily making progress in its venture into semiconductors. They have plans to invest $300 million in chip packaging (OSAT), took a stake in Tejas (product company) and Saankhya (design) and is said to be in discussions for a fab in India to address its growing automotive needs and future EV plans. A reputed and big group like Tata getting more into semiconductors is a good sign for the future of the ecosystem in India," says Arun Mampazhy, a semiconductor veteran and analyst.
Rajeev Chandrasekhar, Union Minister of State for Entrepreneurship, Skill Development, Electronics & Technology tweeted, “This cud be an important alliance for India's 400Billion Electronics n #Semiconductor ambition n goals. I wish this partnership the best & great success.” The minister tagged the official Twitter handles of the two companies along with Semicon India, PMO India and MeitY.
The partnership between Renesas and TML will collaborate on developing next-generation automotive electronics to drive leadership performance and scalability for vehicles. Renesas with deep expertise in semiconductor technology will partner with TML to accelerate the development of electric and connected vehicles to further enhance TML’s pre-eminence and market-leading position, all will explore a non-exclusive partnership on emerging technologies such as ADAS.
"We see great potential in collaborating with Renesas in areas like automotive electronics and present and future telecom networks. The collaboration will accelerate our presence in these areas in India as well as globally," said Natarajan Chandrasekaran, Chairman of Tata Sons.
On the other hand, the collaboration with Tejas will focus on implementing next-generation wireless network solutions including the design and development of semiconductor solutions for radio units (RU) used in telecom networks, from 4G, and 5G, to open radio access network (O-RAN), which enables open and flexible 5G RAN deployments, in addition to allowing wider interoperability. The companies aim to roll out products and solutions initially for India and aim to expand its footprint in the global markets.
Hidetoshi Shibata, President and CEO at Renesas said, "Renesas and Tata will support the acceleration of progress in advanced electronics and its multitudes of applications for the Indian and emerging markets, which sets us both on a path for continued success."
In March 2022, the next-generation EV Innovation Center (NEVIC) was jointly established by Renesas and Tata Group’s Tata Elxsi.
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