Tata Chief Highlights Challenges in India’s Semiconductor Initiative, Emphasizes Need for Global Collaboration
India has the potential to emerge as a key player in the global semiconductor supply chain, according to Tata Sons Chairman N Chandrasekaran. Speaking at the 2026 Bloomberg New Economy Forum, he emphasized that investments in this sector must be driven by demand, financial viability, and the capability to execute projects. He noted that semiconductors are crucial for India’s future and for meeting domestic consumption needs.
Chandrasekaran highlighted India’s advantages, including a skilled talent pool, a large domestic market, and the ability to engage in international supply chains. “We are in a beautiful spot in India, because we have the talent, we have the domestic market, we can play a part in every global supply chain,” he stated. He also stressed the importance of collaborating with global partners to build a robust semiconductor ecosystem, pointing out that access to technology and energy availability are vital for developing manufacturing capabilities.
Investment Projects in Semiconductor Manufacturing
Tata Electronics is advancing its semiconductor initiatives with a fabrication plant in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). This project entails an investment of approximately Rs 91,000 crore and aims to produce chips for various applications, including automobiles and artificial intelligence. Additionally, the group is establishing a semiconductor assembly and test facility in Assam, with an investment of around Rs 27,000 crore. These projects are designed to meet increasing domestic demand and enhance India’s semiconductor supply chain.
Chandrasekaran cautioned against rushing into the production of advanced chips without a clear understanding of market demand. He stated, “You cannot be reckless and say that I am going to be putting a 2 nanometre chip (plant). It’s just not going to work.” He emphasized that financial viability is crucial for both businesses and the broader economy, insisting that investments must make commercial sense and foster sustainable employment.
He acknowledged the inherent unpredictability of global investments but asserted that certain factors, such as energy requirements and project execution capabilities, remain constant. “Energy is certain, the game is certain, the ability to execute is certain,” he said.
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