India’s Tata Group and US semiconductor firm ADI have formed a strategic alliance to explore potential cooperative manufacturing opportunities. The new agreement is hailed as a “significant step in establishing a robust electronics manufacturing ecosystem in India both for domestic and global consumption”.
The Indian conglomerate’s automotive subsidiary Tata Motors, as well as Tata Electronics and Tejas Networks, have signed a memorandum of understanding (MoU) with ADI to enhance strategic and business cooperation, explore opportunities for semiconductor manufacturing in India, and use ADI's products in Tata applications like EVs and power network infrastructure.
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“The Tata Group is deeply committed to pioneering a thriving semiconductor industry in India,” says N Chandrasekaran, chairman of Tata Sons. “We are excited to partner with ADI across the semiconductor value chain and explore collaboration between ADI and Tata Group companies to design and offer advanced products to serve our customers."
"By combining our real-world semiconductor solutions and software expertise with Tata's vision and capabilities, we can accelerate the development of cutting-edge technologies, from electric vehicles to next-generation network infrastructure," says ADI CEO Vincent Roche.
Tata Electronics has already committed $11bn to building India's first fab in Dholera, Gujarat. It will be investing another $3bn in a greenfield facility in Jagiroad, Assam, for the assembly and testing of semiconductor chips. The firm and ADI will explore opportunities to manufacture ADI's products in both new facilities.
Tata Motors and ADI intend to explore opportunities for engagement in electronics hardware components for energy storage solutions and power electronics in both commercial and passenger vehicles.
Finance packages
Separately, Tata Motors has signed an MoU with Esaf Small Finance Bank to offer financing solutions to its commercial vehicle customers. Initially focused on small commercial vehicles (SCVs) and light commercial vehicles (LCVs), the partnership will expand to include financing for Tata Motors’ entire commercial vehicle portfolio.
“Our partnership with Esaf Small Finance Bank enhances access to seamless financing solutions for our customers in deeper pockets of the country,2 says Vinay Pathak, vice-president & business head – SCV&PU at Tata Motors. "This collaboration further strengthens our endeavour to boost entrepreneurship and job creation, particularly in first- and last-mile logistics.”
“Our shared vision of empowering entrepreneurs aligns perfectly with this partnership," says Hemant Kumar Tamta, executive vice-president, Esaf Small Finance Bank. "With our extensive network and expertise in financial inclusion, we are confident that this partnership will stimulate significant growth and support the ambitions of commercial vehicle businesses.”
Tata Motors offers a range of cargo vehicles mass mobility solutions, from small commercial vehicles to pickups, trucks and buses.
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