The move comes as a persistent global shortage of semiconductor chips has forced the automotive and electronics industries to cut production, highlighting global reliance on some sources.
Japanese chip maker Renesas Electronics Corp and India’s Tata Motors have formed a strategic partnership to design, develop and manufacture semiconductor solutions, the firms said on Wednesday.
The move comes as a persistent global shortage of semiconductor chips has forced the automotive and electronics industries to cut production, while highlighting global reliance on some sources such as Taiwan.
Renesas will collaborate with Tata Motors, India’s largest manufacturer of electric cars, to develop “next generation automotive electronics” to accelerate the growth of electric and connected vehicles, the companies said in a statement.
Natarajan Chandrasekaran, Chairman, Tata Sons, a Tata holding company, said, “The alliance will accelerate our presence in these regions in India as well as globally.”
Areas of collaboration seen by the firms include a non-exclusive partnership on emerging automotive technologies, such as advanced driver-assistance systems (ADAS), as well as wireless network solutions including 5G.
Here, Renesas will work with Tata Group firm Tejas Networks to build products initially for India and eventually for global markets.
India is rushing to subsidize the domestic manufacturing of factories that produce semiconductors and displays in an effort to reduce supply risks.
Its plan for a $10 billion stimulus has attracted applications from domestic conglomerate Vedanta and firms such as a joint venture between Foxconn of Taiwan and IGSS Ventures of Singapore.
Oil-to-metal maker Vedanta plans to invest $20 billion for the two units for chip and display manufacturing, while jeweler Rajesh Exports will invest $3 billion in an electronic display plant.
India expects the domestic chip market to grow from $15 billion in 2020 to $63 billion by 2026.
(Reporting by Aditi Shah; Editing by Rashmi Aich and Clarence Fernandez)
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