Tata Investment Jumps 4% After Group Gets Nod for Chip Plants

1 Mar 2024 , 11:36 AM

In the early session on March 1, shares of Tata Investment Corporation increased by 4%. The previous day, the Union Cabinet had approved three proposals for semiconductor plants, two of which would be established by the Tata group.

The projected construction of two of the three plants—one in Assam and one in Gujarat—will cost approximately ₹1.26 Lakh Crore. The Murugappa Group-owned CG Power will establish a facility in Gujarat, while the Tata group will establish units in Assam and Gujarat. IT Minister Ashwini Vaishnaw stated that work on the three plants will start in a hundred days.

Tata Investment Corporation was up 4.37% on the day at 11.49 am on the National Stock Exchange, trading at ₹7,599. 

An NBFC called Tata Investment Corporation makes investments in the diverse portfolios of several businesses, including the Tata group.

The establishment of a semiconductor factory within the nation is a significant choice made by the prime minister. Tata and Powerchip-Taiwan, whose unit will be in Dholera, will establish the first commercial semiconductor fab. A fab will soon be built in Dholera, following the Micron semiconductor plant in Sanand, according to Vaishnaw.

The minister added that Tata Semiconductor Assembly and Test Pvt Ltd’s chip assembly and testing facility in Assam, which will require an investment of ₹27,000 Crore, was also approved by the Cabinet.

With a monthly capacity of 50,000 wafers, Tata Electronics Pvt Ltd, in collaboration with PSMC, Taiwan, will establish the nation’s first fabrication plant. This factory, which will cost ₹91,000 Crore to build, will be located in Dholera, Gujarat.

With six semiconductor foundries in Taiwan, PSMC is well-known for its proficiency in the logic and memory foundry industries.

The processors will use 28 nm technology and be high-performance computation devices. These are chips for power management used in telecom, defence, automotive, consumer electronics, power electronics, and electric vehicles (EVs). Applications for power management chips involve high voltage and high current.

Among the cutting-edge semiconductor packaging technologies that TSAT Semiconductor is creating in-house are flip chip and ISIP (integrated system in package) technologies. 

Tata Investment Corporation had increased 30% in the month before to the statements, based on reports that the Tata Group was putting out bids for semiconductor factories.

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