Tatas just came a bit closer to becoming India’s first semiconductor powerhouse
Tata Motors, the largest electric car manufacturer in India, and Renesas Electronics, a Japanese chip maker, have formed a partnership and are working together to design and develop semiconductors.
The partnership will help Tata Motors in overcoming the global auto chip crisis, which has impacted its earnings and led to production cuts and even temporary plant closures. Chips created in partnership with Renesas will be useful for Jaguar Land Rover's upcoming and existing electric vehicles.
The Japanese chip maker will likely try to leverage the US$ 10 billion in incentives offered by New Delhi for establishing chip plants in India, which is anticipated to be one of the world's largest markets for electric cars.
Only a few global businesses are involved in emerging technologies. If the partnership is executed well, the company has the potential to become the country’s largest conglomerate.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.