N Chandrasekaran, Tata Sons chairman, will assume the role of chairman of Tata Electronics, highlighting Tata's determination to enter the semiconductor industry as the group forays into semiconductors, EVs, and iPhone manufacturing amid India's ambition to develop a local high-tech ecosystem.
The Economic Times reported that Chandrasekaran is set to lead Tata Electronics as chairman, replacing Banmali Agrawala, who has served in the role for several years. Chandrasekaran, already chairing multiple Tata Group entities, will assume the position upon regulatory clearance. Agrawala will transition to an advisory role within the group.
Tata Sons serves as the principal holding company and promoter of the Tata Group, one of India's largest and most respected conglomerates. Its primary role is to oversee the diverse portfolio of Tata Group companies, providing strategic direction, governance, and leadership.
In the meantime, Randhir Thakur, former lead of Intel Foundry Services, has been CEO and managing director at Tata Electronics since June 2023. Joining him is Srinivas Satya, who became the company's chief supply chain officer and president of the components business in January. Satya previously served as the country president of Applied Materials.
According to the report, Tata Electronics has recently hired 50-60 top-level expatriates. An unnamed Tata Electronics executive told the report that the board now possesses the necessary management capabilities to expand the business, adding that addressing previous challenges in talent and technology, Tata Electronics is actively pursuing both to fuel its growth trajectory.
Neil Shah, vice president at Counterpoint, said that since the chipmaking is a complete greenfield area for Tata, it will need a more strategic, measured, and bold approach.
Chandrasekaran announced Tata's foray into semiconductors in August 2021. Tata previously planned to enter the ATMP/OSAT business and later expanded its ambition into the foundry business by partnering with Taiwan-based PSMC. The Indian government approved Tata's fab and ATMP projects in Gujarat and Assam earlier this year. Meanwhile, Tata Electronics is the only India-based supplier listed on Apple's top supplier list for fiscal 2023.
The Business Standard reported that Tata Group plans to convene a meeting of senior officials on May 20 to deliberate on future group strategies. With plans to invest $120 billion in semiconductor, defense, iPhone manufacturing, EVs, aviation, and financial services over the next few years, discussions are anticipated to revolve around strategies for these ventures.
