Tata Electronics Eyes Malaysia Foray via Chip Fab Acquisition

Tata Electronics Taps Chip Giant NXP to Bag Orders for Fab, OSAT Agencies

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Tata Electronics is in talks with several global semiconductor companies including X-Fab, DNeX and Globetronics to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia, according to people in the know. The move is aimed at bolstering the Tata Group company’s knowledge and talent base before entering the semiconductor assembly and packaging business in India. KC Ang, who was appointed president and head of Tata Semiconductor Manufacturing in April this year, is driving these acquisition efforts, the people said. “Globetronics and DNeX’s SilTerra facility are among the front runners to be acquired by Tata Electronics,” said one of the people.

Tata Electronics is investing more than Rs 91,000 crore to set up a semiconductor fab unit at Dholera, Gujarat, and Rs 27,000 crore in an OSAT facility at Assam’s Morigaon.

“Running a fab is not going to be simple and Tata Electronics is aware of that,” a second person said.