Intensifying Global Semiconductor War... India Joins After China

[Asia Economy Reporter Suyeon Woo] As global semiconductor companies from Korea, the United States, Taiwan, and China compete fiercely to secure market dominance, India has also declared its entry into the global semiconductor war. Recently, India's representative company Tata Group hinted at entering the semiconductor manufacturing industry to respond to the prolonged semiconductor supply shortage.

According to local foreign media on the 16th, Natarajan Chandrasekaran, Chairman of Tata Sons, said at the recently held Indian Merchants' Chamber (IMC) general meeting, "Tata Group has already started transitioning to key industries such as electronics manufacturing, 5G networks, and semiconductors from a mid-term perspective to respond to new business opportunities."

He emphasized, "Through supply chain restructuring, India can become a beneficiary of the global transition," adding, "Tata Group has already entered cutting-edge electronics manufacturing, and India's electronics industry can generate a $1 trillion GDP and millions of jobs."

To this end, Tata Group recently recruited Landier Thakur, Intel's Chief Supply Officer and head of the foundry services division, as a director of Tata Electronics.

Natarajan Chandrasekaran, Chairman of Tata Sons

The direct reason Tata Group has entered the semiconductor industry is that the recent worsening shortage of automotive semiconductors has severely impacted its automobile subsidiaries. With the capability of in-house semiconductor production, automobile subsidiaries such as Tata Motors and Jaguar Land Rover are expected to respond more agilely to semiconductor shortages. The semiconductor industry's infinite growth potential itself cannot be ignored.

Recently, as the global supply chain shifts from being China-centered to other markets, there is also optimism that India will rapidly emerge as a new market replacing China. The United States is continuously trying to reduce dependence on China in the global supply chain, restraining China, and striving to attract core semiconductor supply chains to its own country or allied nations.

Indian local media Indian Express stated, "Tata Group's entry into the semiconductor industry is not only a profitable business venture targeting global customers but will also help strengthen its own captive supply chain by supplying key components to Tata Motors, Tata Power, and others."