Tata Group to foray into semiconductor manufacturing business
You must have heard recently that Volvo India has delayed the launch of the XC40 Recharge due to the shortage of semiconductor chips. Not only that, most manufacturers are finding it difficult to manage the semiconductor chips and that is resulting in production halts. The world heavily relies on China for semiconductors and since the pandemic, the supply chain has been disrupted.
With alterations in the global supply chain and geopolitical changes, manufacturers are shifting their reliance to other countries and this comes out as a big opportunity for India. Tata Group has already announced its 5G network support and has been considering the manufacturing of semiconductors. Semiconductor manufacturing involves building chipsets using different metals and India doesn't have any such facility yet.
Tata Group chairman N Chandrasekaran shared that "On rebalancing supply chains, India can significantly benefit from the geopolitical shifts that we are seeing. At the group, we have already set up a business to seize the promise of high-tech manufacturing of electronics, precision manufacturing, assembly and testing and semiconductors in the medium term." The realteration in the global supply chain will help India to show its calibre and build its economy. Know more about the global semiconductor shortage here.
Chandrasekaran said he sees four trends emerging in the post-pandemic world, rapid digital acceleration, a new approach to supply chains, a re-imagination of growth with environmental sustainability at the core and inclusion of health and wellness concerns by every business. Tata Digital is working on multiple platforms covering retail, health, financial services, travel, education and a lot more.
Text by Amit Saraswat
Source: ET Auto
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