A proposed merger of Tata Electronics and TCE with Tata Sons could bring major electronics and semiconductor operations directly into the holding company as the Tata Group seeks to alter its RBI regulatory status and potentially avoid a mandatory listing.
Tata Electronics’ growing semiconductor and electronics manufacturing operations could become a direct part of Tata Sons under a proposed merger that could also alter the holding company’s regulatory status and help it potentially avoid a mandatory listing.
The proposed merger of Tata Electronics Systems and Tata Consulting Engineers (TCE) with Tata Sons would bring major operating businesses into the group’s principal holding company. Tata Trusts argue that this could reduce the share of Tata Sons’ assets and income represented by financial and investment activities, potentially taking it outside the RBI’s regulatory definition of an NBFC or Core Investment Company (CIC).
Tata Electronics has become the Tata Group’s fourth-largest company by revenue in four years, reporting ₹131,082 crore. Its operations span electronics manufacturing, semiconductor fabrication, advanced packaging, indigenous chip development and semiconductor materials. Its operating profit has reached breakeven, while it reportedly manufactured about 12% of the total phone volume produced by the global leader in 2025.
The company is building India’s first high-volume semiconductor fabrication facility in Gujarat and has packaged what Tata describes as India’s first indigenous microprocessor. The Tata Sons annual report said, “We will develop advanced packaging, indigenous electronics and semiconductor solutions, capabilities in semiconductor materials, and work with the most advanced lithography tools in Dholera.”
TCE, which reported ₹2,885 crore in consolidated income in FY26, would add another operating business to Tata Sons.
However, the restructuring does not automatically remove Tata Sons from RBI regulation. The outcome depends on the transaction structure, post-merger composition, RBI criteria and approvals. The Tata Sons board had voted 4:1 on September 17 to proceed with the RBI-mandated listing process.
