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Renesas ties up with Tata Motors for semiconductor development amid global chip shortage

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Japanese chipmaker Renesas and India’s Tata Motors have formed a strategic partnership to design, develop and manufacture semiconductor solutions, the firms said on Wednesday.

The move comes as a persistent global shortage of semiconductor chips has forced the automotive and electronics industries to cut production, while highlighting global reliance on some sources such as Taiwan.

Renesas will collaborate with Tata Motors, India’s largest manufacturer of electric cars, to develop “next generation automotive electronics” to accelerate the growth of electric and connected vehicles, the companies said in a statement.

Natarajan Chandrasekaran, Chairman, Tata Sons, a Tata holding company, said, “The alliance will accelerate our presence in these regions in India as well as globally.”

Areas of collaboration seen by the firms include a non-exclusive partnership on emerging automotive technologies, such as advanced driver-assistance systems (ADAS), as well as wireless network solutions including 5G.

Here, Renesas will work with Tata Group firm Tejas Networks to build products initially for India and eventually for global markets.

India is rushing to subsidize domestic manufacturing of factories that produce semiconductors and displays in an effort to reduce supply risks.

Its $10 billion (about Rs 78962 crore) stimulus plan has attracted applications from firms such as domestic conglomerate Vedanta and a joint venture between Taiwan’s Foxconn and Singapore’s IGSS Ventures.

Oil-to-metals giant Vedanta plans to invest $20 billion (about Rs 1.6 lakh crore) for two units for chip and display manufacturing, while jeweler Rajesh Exports plans to invest $3 billion in an electronic display plant. (about Rs 23688 crore).

India expects the domestic chip market to grow from $15 billion (about Rs 1.2 lakh crore) in 2020 to $63 (about Rs 5 lakh crore) billion by 2026.

© Thomson Reuters 2022


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