N Chandrasekaran to lead Tata Electronics's $14 billion semiconductor venture
N Chandrasekaran, the chairman of Tata Sons, is set to expand his responsibilities by taking on the role of chairman at Tata Electronics. This strategic move comes as the company plans to invest approximately $14 billion in its venture into the semiconductor industry. The change in leadership sees Banmali Agrawala stepping down from his long-held post to assume an advisory role within the group, pending regulatory approvals.
Chandrasekaran's appointment signals strategic importance
Chandrasekaran's appointment underscores the strategic significance of the semiconductor business to Tata. His influence was pivotal in recruiting Randhir Thakur, a former Intel Foundry Services executive, as CEO and MD of Tata Electronics in 2023. Srinivas Satya, previously country president of the semiconductor products group at Applied Materials, also joined as chief supply chain officer and president of the components business earlier this year.
Tata Electronics strengthens team for semiconductor venture
Under Chandrasekaran's leadership, Tata Electronics has positioned itself at the forefront of India's electronics manufacturing sector. The company has bolstered its team by hiring 50-60 senior-level expatriates with expertise in semiconductor technology, strategic planning, and design. An executive close to the company told the Economic Times that "the board of Tata Electronics now has the management width and heft to scale up the business."
Tata Electronics's bold approach toward 'One Tata' vision
Neil Shah, Vice President at Counterpoint Research, emphasized the need for a strategic and bold approach from Tata Electronics. He stated that "since this is a completely greenfield territory for Tata, Tata Electronics will need a more strategic, measured and bold approach moving toward the 'One Tata' vision laid out by Chandrasekaran." Shah also highlighted the billion-dollar opportunity in electronics factories from semiconductor fabs to finished goods.
Tata Electronics expands iPhone production amid market changes
Established in 2020, Tata Electronics is the sole Indian vendor assembling iPhone enclosures for Apple. The company intends to expand its existing facility in Hosur, Tamil Nadu and has purchased a facility in Karnataka previously run by Taiwan's Wistron. Reports suggest that Tata Electronics is contemplating acquiring Pegatron's facility in Tamil Nadu to further boost its production capacity.
