Renesas Electronics and Tata Motors collaborate on chip solutions

According to foreign media reports, Japanese chipmakers Renesas Electronics and India's Tata Motors said on June 29 that the two companies have formed a strategic partnership to jointly design, develop and manufacture semiconductor solutions.

Image source: Renesas

The announcement of the partnership comes as a persistent global shortage of semiconductor chips has dragged down industries such as the automotive and electronics industries, forcing automakers to cut production and underscoring the world's reliance on a handful of chip suppliers, including Taiwan.

Renesas will partner with Tata Motors, India's largest electric vehiclemaker, to develop "next-generation automotive electronics" to accelerate the growth of electric and connected vehicles, thecompanies said in a statement .

Natarajan Chandrasekaran, chairman of Tata Sons, the holding company of Tata Motors, said, "This partnership will accelerate our chip presence in India as well as globally."

The areas of cooperation between the two companies include non-exclusive cooperation in emerging automotive technologies such as advanced driver assistance systems (ADAS) and wireless networking solutions such as 5G.Renesas will partner with Tejas Networks, a Tata Group company, to manufacture products initially for India and eventually for global markets.

India is one of the countries scrambling to subsidize the construction of domestic semiconductor and display factories in an effort to minimize chip supply risks.India's $10 billion chip incentive plan has attracted applications from companies such as a joint venture between Indian conglomerate Vedanta and Foxconn, which plans to invest $20 billion in two chip and display manufacturing plants.

India expects the domestic chip market to grow to $63 billion by 2026, up from $15 billion in 2020.