Tatas just came a bit closer to becoming India’s first semiconductor powerhouse

  • The tie-up with Japanese chip manufacturer Renesas Electronics will help Tata Motors tide over the global auto chips crunch that has affected its earnings and resulted in production cuts and even temporary plant shutdowns
India’s largest electric carmaker, Tata Motors, and Japanese chip manufacturer, Renesas Electronics, are partnering to design and develop semiconductors. The tie-up will help Tata Motors tide over the global auto chips crunch that has affected its earnings and resulted in production cuts and even temporary plant shutdowns. Designing chips in collaboration with Renesas will come in handy for the current and newer electric cars to be made by Jaguar Land Rover.

Electric cars are the future of the auto industry. Tata Motors, which sold 19,105 electric cars last year, a more than a four-fold jump from the 4,218 in the year ended March 2021, has doubled down on its investments in the segment. Tata Motors had a market cap of $17.5 billion as of 29 June; the electric car division managed to raise $1 billion from TPG, the private equity group, at a $9.1 billion valuation in October last year.

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