NEW DELHI, June 29 (Reuters) – Japanese chipmaker Renesas Electronics Corp ( 6723.T ) and India’s Tata Motors ( TAMO.NS ) have formed a strategic partnership to design, develop and manufacture semiconductor solutions, the companies said on Wednesday.
The move comes as a persistent global shortage of semiconductor chips has hampered the auto and electronics industries, among others, forcing production cuts, while highlighting global dependence on a few sources, such as Taiwan.
Renesas will partner with Tata Motors, India’s largest maker of electric cars, to develop “next-generation automotive electronics” to accelerate the growth of electric and connected vehicles, the companies said in a statement.
“The collaboration will accelerate our presence in these areas in India as well as globally,” said Natarajan Chandrasekaran, chairman of Tata holding company Tata Sons.
Areas of cooperation that the companies are eyeing 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 partner with Tata group Tejas Networks to manufacture products initially intended for India and eventually global markets.
India is one of the countries competing to subsidize domestic construction of factories that make semiconductors and displays in an effort to minimize supply risks.
Its plan for $10 billion in incentives has attracted applications from companies such as a joint venture between domestic conglomerate Vedanta ( VDAN.NS ) and Taiwan’s Foxconn ( 2317.TW ) and Singapore’s IGSS Ventures. Read more
Oil-to-metals giant Vedanta plans to invest $20 billion for two chip and display manufacturing units while jeweler Rajesh Exports ( REXP.NS ) will invest $3 billion in an electronic display plant. Read more
India expects the domestic chip market to reach $63 billion by 2026 from $15 billion in 2020.
Reporting by Aditi Shah; Editing by Rashmi Aich and Clarence Fernandez
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