Tata is expected to invest $300 million to set up a semi-conductor assembly and test unit. They are likely to set up the plant in South India. It will make outsourced semiconductor assembly and test (OSAT). Such a plant packages, assembles and tests foundry-made silicon wafers. These are turned into finished semiconductor chips.

As we know, Tatas are very strong on the software side. They would like to add hardware to their product portfolio. It is very critical for long-term growth.

The potential clients for OSATs are Intel, Advanced Micro Devices (AMD) and STMicroelectronics. Separately, Tata is already building a high-tech electronics manufacturing facility in Tamil Nadu.