Tata Motors, India’s leading electric-vehicle manufacturer, has joined hands with Japanese chipmaker Renesas Electronics Corp to produce semiconductor solutions in their bid to countervail the semiconductor shortage in the domestic as well as global markets.
As part of the collaboration, the two companies will design, develop and manufacture semiconductor solutions to accelerate the growth of the electric and connected vehicle market that has been immensely affected by the ongoing chip shortage.
The Japanese company will also collaborate with Tejas Networks, a networking solutions subsidiary of the Tata Group, to provide wireless solutions including 5G – limited to the domestic market in India with plans to expand to global markets in future.
OEMs in India have been undertaking price hikes lately in the back of rising input costs and prolonged semiconductor shortage. Tata Motors has also announced a price hike of up to 2.5 per cent on its range of commercial vehicles.
Last year, India approved a $10 billion (about 100 crore INR) incentive package to woo global chipmakers to set up their manufacturing units in India. On the other hand, Tata Motors has been actively looking to set foot in the chip manufacturing space after having taken over the Indian EV market by a storm with its Nexon EV.