Although there is no official announcement, Tata Electronics is reportedly eyeing Dutch chipmaker NXP Semiconductors to become a key customer for its upcoming semiconductor facilities in Gujarat and Assam.
Tata Electronics is in advanced talks with Dutch chipmaker NXP Semiconductors to onboard it as a customer for its upcoming semiconductor fab in Gujarat and the outsourced semiconductor assembly and test (OSAT) facility in Assam, sources told The Economic Times.
This potential partnership is expected to follow a similar model to Tata’s existing agreement with US-based Analog Devices Inc (ADI), focused on manufacturing ADI chips in India. Tesla has also emerged as a possible customer for Tata’s semiconductor division.
Though NXP operates its own fabrication plants, it is exploring outsourcing options to strengthen supply chain resilience. The Tata fab and OSAT units are seen as strategic fits for this goal.
The ET report said the companies are assessing which chips can be prototyped and produced in India, especially analogue and industrial chips, which do not rely on cutting-edge nodes.
The motivation includes diversifying manufacturing beyond major players like Taiwan’s TSMC. However, neither Tata Electronics nor NXP responded to media queries by Sunday.
According to Counterpoint Research’s Neil Shah, Tata has long-standing ties with NXP, particularly in the automotive chip segment. He said Tata’s strategy is to engage multiple clients to populate its India-based semiconductor customer base, with NXP being a strong candidate.
Tata’s Dholera fab, capable of producing 50,000 wafers a month, is set to begin operations later this year, focusing on 28 nm chips and power management components. Its OSAT facility in Assam will specialise in advanced packaging technologies and support sectors like electric vehicles, telecom, and consumer electronics.
NXP currently runs fabrication sites in the Netherlands and the US, producing a variety of semiconductors including MCUs, MPUs, RF devices, and sensors.
