Tata Electronics, Bosch join forces to boost India’s semiconductor and automotive chip play

Tata Electronics and German engineering major Robert Bosch GmbH have signed a Memorandum of Understanding (MoU) to collaborate across key areas in semiconductor and electronics manufacturing.

The partnership will focus on chip packaging and manufacturing at Tata Electronics’ upcoming facilities, including an assembly and test unit (OSAT) in Assam and a semiconductor foundry in Gujarat. The agreement was signed by Tata Electronics CEO and MD Dr Randhir Thakur and Dirk Kress, Executive Vice President of Semiconductor Operations at Bosch, the company announced in a press statement on Thursday.

“We are excited to partner with Bosch to help create a robust and reliable supply chain for key technology products. This partnership is well-aligned with our commitment to help build a holistic semiconductor and electronics ecosystem in India, with offerings that resonate with customers around the world,” said Thakur in a statement.

In addition to semiconductor manufacturing, the two companies will explore joint opportunities in Electronic Manufacturing Services (EMS) for automotive electronics. This includes identifying and pursuing India-based projects that are mutually beneficial.

Bosch aims to strengthen its supply chain for advanced automotive electronics through this collaboration. The move aligns with the company’s plan to meet rising demand in the mobility sector while expanding its footprint in India’s growing electronics ecosystem.

“Bosch recognises the increasing demand for advanced automotive electronics and their critical role in shaping the future of mobility,” said Dirk Kress, Executive Vice President, Semiconductor Operations, Robert Bosch GmbH, in a statement.

Tata Electronics and Bosch did not disclose financial terms or timelines associated with the projects under the MoU.

The agreement comes amid increasing global interest in semiconductor self-reliance and the development of resilient supply chains, particularly in the context of automotive components and electronics. For Bosch, the partnership adds to its efforts to localise manufacturing and tap into India’s expanding vehicle electronics market.

Earlier this year, in March, Tata Electronics signed an MoU with Taiwanese foundry Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies, a fabless display driver IC and semiconductor manufacturer, to expand India’s display and ultralow power AI sensing product and technology ecosystem.

PSMC and Tata Electronics had already signed an agreement in September last year to establish advanced semiconductor manufacturing capabilities in India.

Tata Electronics is investing ₹91,000 crore to establish India's first high-tech chip manufacturing plant in Dholera, Gujarat, with 50% of the investment subsidised by the central government. The plant will produce 50,000 wafers per month, catering to sectors such as electric vehicles, telecom, and defence. The fab is projected to generate over 20,000 direct skilled jobs with a vision to create more than 1 lakh indirect jobs. The first inaugural chip is anticipated to roll out by the end of this year.