Tata Investment Corporation Rises 5% As Group Gets Nod To Set Up 2 Semiconductor Plants

Tata Investment Corporation shares climbed over 5 per cent to hit a new 52-week high of Rs 7,635 in Friday’s trade on BSE after the Union Cabinet approved three semiconductor plant proposals, two of which will be set up by the Tata Group.

Two of the three plants will be built in Gujarat and one in Assam at an estimated cost of Rs 1.26 lakh crore. The Tata group will set up plants in Gujarat and Assam, while Murugappa Group-owned CG Power will set up a plant in Gujarat. The construction of the three plants will begin within 100 days, IT minister Ashwini Vaishnaw said.

Tata Investment Corporation is an NBFC that invests in the diversified portfolios of various companies, including those of the Tata group.

“The Prime Minister has taken an important decision to set up a semiconductor fab in the country. The first commercial semiconductor fab will be set up by Tata and Powerchip-Taiwan, whose plant will be in Dholera. After the Micron semiconductor plant in Sanand, a fab will now come up in Dholera,” Vaishnaw said.

The Cabinet also approved Tata Semiconductor Assembly and Test Pvt Ltd’s chip assembly and testing unit in Assam at an investment of Rs 27,000 crore, the minister said.

The country’s first fab, with 50,000 wafers per month capacity, will be set up by Tata Electronics Pvt Ltd in partnership with PSMC, Taiwan. This fab will be constructed in Dholera, Gujarat at an investment of Rs 91,000 crore.

PSMC is renowned for its expertise in logic and memory foundry segments and has six semiconductor foundries in Taiwan.

The chips will be high-performance compute chips with 28 nm technology. These are power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, power electronics, etc. Power management chips are high voltage, high current applications.

The second unit in Assam will be set up by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam. This unit will be set up with an investment of Rs 27,000 crore.

TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies.

Ahead of the announcements, Tata Investment Corporation had surged 30 per cent over the month following reporrs that the Tata Group was bidding to set up semiconductor plants.