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Tag: NXP

  • Tata-NXP Fab Talks Signal Bold Leap in India’s Chip Race

    According to reports, Tata Electronics is in talks to add NXP Semiconductors, a leading semiconductor design company, as a major client. Through their agreement, Tata will manufacture NXP’s products at its outsourced semiconductor assembly and test (OSAT) facility in Assam and its future semiconductor fab factory in Gujarat.

    According to one of the sources, the agreement is anticipated to replicate Tata Electronics’ previous collaboration with Analogue Devices, a US-based semiconductor manufacturing company, where the company hopes to begin chip production by 2026.

    In September of last year, Analogue Devices and Tata Electronics, Tata Motors, and Tejas Networks signed a memorandum of understanding (MoU) to investigate potential collaboration in semiconductor production in India.

     At that time, the Tata Group-owned company committed to producing Analogue Devices’ goods at both its OSAT facility in Assam and its future semiconductor fabrication site in Gujarat.

    Shifting Away from Taiwan

    Even though businesses like NXP have their own factories, they frequently outsource some of their production, which is where OSAT and the Tata fab can be useful. A media article claims that businesses desire to have an alternative to depending entirely on companies like TSMC, a well-known Taiwanese semiconductor contract manufacturing and design firm.

     The research went on to say that while there aren’t many options at the advanced node, businesses like NXP would profit from bringing in players like Tata Electronics in the mature nodes.

    Neil Shah, vice president-research at Counterpoint Research, emphasised the Tata Group’s long-standing partnership with NXP as the primary motivation for this action. NXP is a natural fit because of their existing business, particularly in automotive chips, and it only makes sense for Tata Electronics to talk to a number of potential customers and construct an India Rolodex for their forthcoming fab.

    Tata’s Fab to be Operational Later this Year

    Later this year, Tata’s Dholera factory, which can produce 50,000 wafer starts each month, is anticipated to be operational.

    In addition to power management chips for electric cars, telecom, defence, automotive, consumer electronics, display, and power electronics, the facility will manufacture high-performance computation chips using 28 nm technology.

    Applications for power management chips involve high voltage and high current. With a daily capacity of 48 million, Tata Semiconductor Assembly and Test (TSAT) at Morigaon, Assam, is creating domestic advanced semiconductor packaging technologies, such as flip chip and integrated system in package technologies.

    Mobile phones, consumer electronics, telecom, electric vehicles, and automobiles are among the markets it will serve. In September of last year, Tata Electronics and ADI inked a memorandum of understanding (MoU) to investigate contract manufacture of the latter’s products in India.

  • NXP, a Semicon Enterprise, will Invest INR 8,400 crore in Karnataka’s R&D

    NXP, a Dutch design and semiconductor manufacturing business, plans to increase its research and development (R&D) expenditures in Bengaluru. Over the following five years, the corporation intends to invest a sizeable amount of INR 8,400 crores, or almost $1 billion, in the state.

    The news was made while Karnataka’s minister of large and medium-sized industries, MB Patil, was on a roadshow in the Netherlands to solicit investments for the state in advance of Invest Karnataka 2025, the state’s premier event.

    Karnataka a Preferred Destination for International R&D Centres

    In a discussion with the company’s executive director, Maurice Geraets, Patil highlighted Karnataka’s critical role in developing worldwide R&D capabilities. “Maurice Geraets, executive director of NXP, the third-largest semiconductor manufacturing and design business in Europe, and I had a productive meeting. Maurice revealed that over the next five years, our state will receive a sizable amount of NXP’s $1 billion R&D investment,” Patil wrote on X.

    There were also interactions with other international players during the roadshow. The Bengaluru Innovation Campus, which recently received an investment of INR 445 crore (€50 million), was the focus of the minister’s discussion with senior executives of Phillips.

    Inviting Phillips to Establish a Manufacturing Unit in Karnataka

    Philips should set up a manufacturing plant in Karnataka, Patil urged. While the state encouraged Signify, formerly Philips Lighting, to invest in Karnataka under the China plus one plan, the company showcased its projects in the state.

    According to a statement from the department, Heineken, a multinational beer and cider corporation, talked about policy changes meant to increase its manufacturing investments in Karnataka. Minister Patil emphasised that the purpose of the roadshow was to establish Karnataka as a top location for foreign investors by showcasing the state’s worldwide attractiveness in industries like advanced manufacturing, renewable energy, and semiconductors.

    China-Plus-One Strategy

    A strategy known as “China-Plus-One,” or simply “Plus One,” involves corporations diversifying their operations to other countries rather than solely investing in China.Western businesses have made significant investments in China over the past three decades, drawn by the country’s low labour and manufacturing costs as well as the enormous and expanding local consumer market.

    A blueprint for creating long-term, robust, collective supply networks was released in July 2022 by a consortium of 18 economies, including the US, India, and the EU. Steps to address supply chain vulnerabilities and dependencies were also included in the roadmap. One could consider this to be a component of the broader China-plus-one plan.

    As early as 2008, U.S. and Japanese officials and businesses were considering diversifying away from China. But China-plus-one only became popular as a different approach for MNCs at the close of the past decade, when trade tensions between the US and China were at their highest. The main causes include the recent decline in China’s cost advantage and the escalating geopolitical mistrust between China and the West.

    Swiggy’s Food Delivery Business Limits Expansion Plans
    Swiggy’s food delivery business is focusing on enhancing operations in existing cities rather than expanding into new locations, prioritizing efficiency and growth.
    StartupTalkyNitin Konde