Japan’s Renesas, India’s Tata Motors associate to develop chip options

NEW DELHI, June 29 (Reuters) – Japanese chipmaker Renesas Electronics Corp (6723.T) and India’s Tata Motors (TAMO.NS) have shaped a strategic partnership to design, develop and make semiconductor options, the companies mentioned on Wednesday.

The transfer comes as a persistent international scarcity of semiconductor chips has hobbled the automotive and electronics industries, amongst others, forcing manufacturing cutbacks, whereas highlighting international dependence on just a few sources, similar to Taiwan.

Renesas will collaborate with Tata Motors, India’s largest producer of electrical automobiles, on creating “next-generation automotive electronics” to speed up the expansion of electrical and related automobiles, the businesses mentioned in an announcement.

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“The collaboration will speed up our presence in these areas in India in addition to globally,” Natarajan Chandrasekaran, the chairman of Tata holding firm Tata Sons, mentioned.

Areas of collaboration eyed by the companies embrace a non-exclusive partnership on rising automotive applied sciences, similar to superior driver-assistance methods (ADAS) in addition to wi-fi community options together with 5G.

Right here Renesas will work with Tata group agency Tejas Networks to make merchandise initially destined for India and ultimately international markets.

India is among the many nations racing to subsidise home building of factories that prove semiconductors and shows in an effort to minimise provide dangers.

Its plan for $10 billion in incentives has lured purposes from companies similar to a three way partnership between home conglomerate Vedanta (VDAN.NS) and Taiwan’s Foxconn (2317.TW), and Singapore’s IGSS Ventures. learn extra

Oil-to-metals large Vedanta plans to speculate $20 billion for 2 items for chip and show manufacturing whereas jeweller Rajesh Exports (REXP.NS) will make investments $3 billion in an digital show plant. learn extra

India expects the home chip market to achieve $63 billion by 2026 from $15 billion in 2020.

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Reporting by Aditi Shah; Enhancing by Rashmi Aich and Clarence Fernandez

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