Tata Electronics in Talks with NXP Semiconductors to Onboard as Customer

Tata Electronics is in advanced discussions to bring Dutch semiconductor giant NXP Semiconductors on board as a customer for its upcoming semiconductor fabrication facility in Gujarat and OSAT (Outsourced Semiconductor Assembly and Test) unit in Assam, according to media reports.

The potential deal is expected to be similar to Tata’s ongoing collaboration with Analog Devices Inc (ADI), where the two companies are exploring chip manufacturing opportunities in India.

Industry insiders say NXP—despite owning its own fabs—outsources part of its chip production. Tata’s upcoming 28 nm fab and packaging capabilities could suit NXP’s needs for analog and industrial chips that don’t require cutting-edge nodes but benefit from greater supply chain resilience.

Tata’s fab in Dholera is expected to become operational later this year, with a monthly capacity of 50,000 wafer starts.

Sources also indicated that Tesla could become a prospective customer for Tata's semiconductor division.