Tata Engineering & Automation Limited (Teal), the subsidiary of Titan Industries will pump in Rs. 200 Crores in the coming 5 years on the expansion of their semiconductor fab-making unit in Hosur.
Titan Engineering & Automation Limited (TEAL)
TEAL, which is a subsidiary of Titan Company, has announced its plan to invest more than Rs 220 crore in the next five years to improve its manufacturing facilities for semiconductor wafer fab equipment components in Tamil Nadu. The CEO of TEAL, NP Sridhar, shared this information.
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TEAL supplies semicon components to makers of Semicon units
TEAL, a company that supplies fab equipment components to a well-known US semiconductor manufacturing firm, is set to increase its production capacity by ten times through a strategic investment. By expanding its manufacturing capabilities, TEAL aims to attract more clients in the semiconductor industry. To support this growth, the company has acquired an additional three-acre land near Hosur, adjacent to its current facility. TEAL plans to construct a new factory solely dedicated to its semiconductor business on this land. The company aims to relocate its entire semiconductor business to this new facility by December 2024.
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Rs 30-40 crore investment has been made to set up infrastructure
TEAL is currently producing 200-250 components for one of its semiconductor manufacturing clients, highlighting the company’s commitment to precision and quality. The investment of Rs 30-40 crore has been utilized to set up processing lines and a state-of-the-art 1,000-class cleaning room.
TEAL is a company that operates in two business divisions – automation solutions and manufacturing services. The manufacturing services business has historically provided precision components and sub-assemblies to aerospace and defense clients. However, in 2020, the company strategically diversified its focus to identify industries where its capabilities could be leveraged. The semiconductor wafer fab equipment sector was identified as a good match because it requires precision machinery and process discipline similar to aerospace engineering.
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The government’s incentives sought to achieve Atmanirbhar in Semicon fab components.
Sridhar has highlighted that TEAL has applied for incentives under the government’s Scheme for the Promotion of the Manufacturing of Electronic Components (SPECS). This scheme was launched in 2020 with an outlay of Rs 3,285 crore and aims to boost the production of electronic components and chipsets in India. The ultimate goal is to increase the domestic value addition throughout the supply chain.
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