Titan Engineering and Automation (TEAL), a wholly owned subsidiary of Titan Company, will invest over Rs 220 crore in the next five years to ramp up its semiconductor wafer fab equipment components manufacturing facilities in Tamil Nadu, NP Sridhar, CEO, TEAL, told FE.
With this expansion, the company expects its production capacity to increase by 10X, Sridhar added.
TEAL has started supplying fab equipment components to a leading US semiconductor manufacturing company, and plans to garner more clients as it ramps up its manufacturing capacity.
The company has acquired an additional three acre land near Hosur, adjacent to its existing manufacturing services facility, to construct a new factory for its semiconductor business.
By December 2024, it expects to move all its semiconductor business to the new facility.
“We are now making 200-250 components required for our semiconductor manufacturer client. We have invested Rs 30-40 crore already in setting up processing lines and a 1,000-class cleaning room,” Sridhar said. He declined to name the client, citing non-disclosure agreement.
TEAL has two business divisions — automation solutions and manufacturing services. The manufacturing services business primarily caters to aerospace and defence clients, providing precision components and sub-assemblies, but in 2020 as Covid hit the aerospace industry, TEAL started identifying industries where it could leverage its capabilities.
“The semiconductor wafer fab equipment space is akin to aerospace engineering requiring precision machinery and process discipline,” Sridhar said, adding: “We started supplying components in 2022 and are probably the first Indian company in the supply chain for semiconductor wafer fab equipment.”
The company has applied for incentives under the government’s scheme for the promotion of manufacturing of electronic components (SPECS).
The SPECS scheme was launched in 2020 with an outlay of Rs 3,285 crore to promote production of electronic components and chipsets in the country to increase domestic value addition down the supply chain.