Analog Devices in Talks with Tata for Indian Fab Partnership

Tata Electronics, Tata Motors, and Tejas Networks recently signed a memorandum of understanding with Analog Devices Inc. (ADI) to delve into potential business collaborations and explore opportunities for semiconductor manufacturing operations in India. The agreement also includes the utilization of ADI products in Tata Motor's electric vehicles and Tejas' networking infrastructure.

As part of the collaboration, the companies have agreed to engage in strategic roadmap alignment discussions. While no specific timeframes were mentioned for the cooperation, there was no indication of any impact on Analog Device's existing capital expenditure plans and chip manufacturing initiatives in the US and Europe. In Japan, Analog Devices has announced plans to procure chips from foundry TSMC's joint venture fab known as JASM.

Tata Electronics has made a significant commitment to establish a wafer fab in Dholera, Gujarat, in partnership with Taiwan's Power Semiconductor Manufacturing Corp. (PSMC), with substantial government backing. The Dholera fab is set to receive an investment of US$11 billion. Additionally, the company intends to allocate US$3 billion for a facility in Jagiroad, Assam, dedicated to the assembly and testing of semiconductor chips.

ADI has expressed its intention to explore the possibility of manufacturing its products at Tata's fab in Gujarat and the packaging facility in Assam. Tata Electronics is also planning to construct two more fabs following the commencement of operations of the first fab in 2026.

"The Tata Group is deeply committed to spearheading a thriving semiconductor industry in India. We are thrilled to collaborate with ADI across the semiconductor value chain and explore partnerships between ADI and Tata Group companies to develop and offer cutting-edge products to meet the needs of our customers," stated Natarajan Chandrasekaran, chairman of Tata Group, in a statement released by Analog Devices.