The Tata Group is gearing up to enter semiconductor manufacturing, eyeing a piece of the high-tech electronics manufacturing market pegged at $1 trillion.

Why now? Global supply chains are currently heavily dependent on China. However, in the aftermath of the pandemic and geopolitical developments, many businesses will look to source chipsets from other countries, and this presents a huge opportunity for India, chairman Natarajan Chandrasekaran said at an industry event on Monday.

“We have already set up a business to seize the promise of high-tech manufacturing of electronics, precision manufacturing, assembly and testing and semiconductors in the medium term,” he said.

Tejas Networks purchase: the development comes nearly a fortnight after the group entered the 5G telecom equipment manufacturing space by buying a controlling stake in Bengaluru-based telecom products major Tejas Networks. This will pit it against the likes of global manufacturers such as Ericsson, Nokia, Huawei and Samsung. Read the explainer on the acquisition here.

The Tata Group is set to enter semiconductor manufacturing, aiming for a slice of the high-tech electronics manufacturing market pegged at $1 trillion, its chairman said.

“At the Tata Group, we have already pivoted into a number of new businesses like electronics manufacturing, 5G network equipment as well as semiconductors, in all probability,” N Chandrasekaran said at an industry event on Monday.