Tata Electronics Growth in Focus as It Scales to ₹1.3 Lakh Crore Revenue, Targets $30 Billion

Tata Electronics, an entity of the Tata Group, has emerged as a key pillar in the group’s semiconductor and electronics manufacturing strategy.  

The push began after Covid, when the group identified chips as a strategic opportunity aligned with resilient and localised supply chains. 

Rapid Growth and Leadership Vision 

Randhir Thakur, Chief Executive Officer and Managing Director, took charge in 2022 following discussions led by N Chandrasekaran to build the business from scratch. 

In a short span, the company has expanded from a ₹400 crore base to a ₹1.3 lakh crore revenue run rate, reaching a scale of about $15 billion and targeting $30 billion over the next 5 years.  

It is now among the top 5 Tata Group companies by revenue and has surpassed Titan Company in scale. 

As per news reports, Thakur said, “We are in the right business at the right time,” and added, “This is a proven business - no one is risking capital.” He emphasised that the focus is on execution, stating that the objective is to “get to the finish line in a global sector.” 

Investments, Projects and Capabilities 

The company is investing across semiconductor fabrication, packaging, and electronics manufacturing services.  

Key projects include a ₹91,000 crore semiconductor fab in Dholera and a ₹27,000 crore OSAT facility in Assam. Around 70% of these project costs are supported by central and state subsidies. 

Investments made so far are in the range of ₹9,000–10,000 crore, with an additional ₹15,000–20,000 crore planned. Around 70% of the Dholera fab’s capacity has already been committed to customers. 

Global partnerships include PSMC, Intel, Tokyo Electron, Qualcomm, Analog Devices, Bosch and Rohm. The company is focusing on mature semiconductor nodes such as 28nm, 40nm, 55nm, 90nm and 130nm, which together account for about 60% of global chip demand, with strong applications in automotive and artificial intelligence. 

Profitability, Ecosystem and Strategy 

Tata Electronics has transitioned from negative EBITDA three years ago to generating over ₹4,000 crore in EBITDA and is now profitable.  

It is fully owned by Tata Sons, with funding for semiconductor and packaging businesses secured, while EMS operations are being funded through internal cash flows. 

The company operates facilities in Hosur and has acquired manufacturing units from Pegatron and Wistron in Tamil Nadu and Karnataka.  

It has built capabilities by leveraging group companies such as Tata Steel for materials, Voltas for cooling systems and TCS for automation. Talent has been sourced from 16 countries. 

On strategy, Thakur highlighted 3 pillars: technology, talent and capital. Technology partnerships with firms like PSMC reduce risk, while the company is also building a strong supply chain network with equipment sourced from the US, Europe, Korea, Japan and Singapore. 

Policy Support and Future Outlook 

Government initiatives such as PLI 1.0 and the India Semiconductor Mission have supported capacity creation, with PLI contributing to growth in mobile exports and ISM enabling multiple facilities.  

The company is also engaging on upcoming PLI 2.0 and ISM 2.0 frameworks to expand capabilities further. 

Thakur said the business is designed to be sustainable beyond incentives, while continuing to benefit from policy support for localisation and capability building.  

The company plans to grow both organically and through partnerships, joint ventures, and acquisitions where strategic opportunities arise. 

Read More: InGovern Recommends Public Listing of Tata Sons to Protect Shareholders! 

Conclusion 

Tata Electronics’ rapid expansion highlights its role in India’s semiconductor ambitions, combining large-scale investments, global partnerships and a capability-driven approach, with execution remaining central to its long-term strategy. 

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