Analog Devices, Tata Group in talks to make semiconductors in India By Reuters

BENGALURU (Reuters) – Analog devices (NASDAQ: ) and Indian aerospace conglomerate Tata Group have signed a pact to explore semiconductor manufacturing in India, the U.S. chipmaker announced Wednesday.

Tata Electronics, the electronics manufacturing arm of the 156-year-old group, is investing a total of $14 billion to build India’s first semiconductor manufacturing facility in Gujarat state and a chip assembly and testing facility in Assam state .

Construction of the Tata group’s semiconductor plant was given India’s go-ahead earlier this year.

Tata Electronics and ADI plan to explore opportunities to manufacture ADI products in Tata Electronics’ Gujarat plant and Assam facility, Analog Devices said in a statement.

Prime Minister Narendra Modi has pushed for India to rival global semiconductor powers such as Taiwan, aiming to make the country a chip maker for the world, despite initial setbacks.

Earlier this month, the western Indian state of Maharashtra said Adani Group and Israel Tower Semiconductor (NASDAQ: ) would invest $10 billion for a chip project. Infrastructure major Larsen & Toubro’s semiconductor unit, which designs chips for vehicles, also plans to eventually build a factory.

Under the deal with ADI, Tata will also use the chip maker’s products Tata Motors Tejas Networks’ (NYSE: ) electric vehicles and telecom infrastructure, the companies said.

The companies have not specified which products will be made in India or which products will be used by Tata.

Including global companies NXP Semiconductors (NASDAQ: ) and Micron (NASDAQ: ) have announced plans to invest and establish facilities in the country.