Japanese chipmaker Renesas Electronics and India’s Tata Motors (TTM.US) said Wednesday that the two companies have formed a strategic partnership to jointly design, develop and manufacture semiconductor solutions.
Renesas Electronics will work with Tata Motors, India’s largest electric vehicle maker, to develop “next-generation automotive electronics” to accelerate the growth of electric and connected vehicles, the companies said in a statement.
Natarajan Chandrasekaran, chairman of Tata Indonesia Sons, a holding company of the Tata Group, said, “This collaboration will accelerate our business in these areas in India and globally.”
According to the statement, areas of collaboration between the two companies include non-exclusive partnerships for emerging automotive technologies such as Advanced Driver Assistance Systems (ADAS) and wireless networking solutions including 5G.
As part of the partnership, Renesas Electronics will also work with Tejas Networks, a Tata Group company, to develop products initially for India and eventually for the global market.
It is understood that India is currently racing to subsidise the construction of domestic semiconductor and display factories, with the aim of minimising supply risk. The country’s US$10 billion incentive scheme has attracted applications from companies including domestic conglomerate Vedanta and a joint venture with China’s Taiwan-based Foxconn, as well as Singapore’s IGSS Ventures.
Related reports say Indian mining giant Vedanta plans to invest US$20 billion in two chip and display manufacturing plants, while Indian multinational gold retailer Rajesh Exports will invest US$3 billion in an electronic display plant.
India expects the domestic chip market to grow to US$63 billion by 2026, up from US$15 billion in 2020.
