Kanpur Metro Trains are being manufactured in Savli, Gujarat, as part of the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives by Alstom India. Around 5 million people will benefit from the new metro trains.
Why is the Tata Group getting into the semiconductor business?
As stated by the Chairman of Tata Sons, N Chandrasekaran, Tata group has already up built up a business to grab the promise of high-tech manufacturing of electronics, precision manufacturing, assembly, and testing, and semiconductors in the medium term. The firm has just purchased a share in Tejas Networks, a company that manufactures telecom equipment. In addition, the Tata Group has previously announced its ambitions for a digital incursion via a super-app and has invested in consumer internet companies such as BigBasket, 1mg.com, and CureFit.
What is the significance of the timing?
Currently, there is a global scarcity of chips and semiconductors, which are required not only for cutting-edge technical goods such as cellphones and computers but also for conventional industries such as cars. Because of the chip scarcity, several carmakers throughout the world have postponed or even pushed back the debut of new automobiles.
Jaguar-Land Rover, a Tata Motors company located in the United Kingdom, has likewise done so. While a move into chip manufacturing would mean entering a profitable company with clients not only in India but throughout the world, it would also be crucial for captive usage with Tata Motors, Tata Power, and other Tata Group companies.
What is the cause of the worldwide chip shortage?
Chips, or semiconductors, which are the brains of any electronic device, have become scarce in the post-Covid age, with numerous big manufacturers in locations like South Korea and Taiwan shuttering. This has resulted in unmet demand, which these foundries have been unable to meet since their opening. On the one side, the epidemic boosted the demand for electronic gadgets like cellphones, laptops, and PCs.
The issue was further made worse by production and logistical delays. This shortage, which began last year, is expected to last until 2022, and in order to avoid a repeat of this situation, a number of companies are planning to reduce their reliance on the few large factories that supply the entire world.