2 weeks ago
Tata Electronics' unfinished semiconductor gamble awaits next chairman
A company called Tata Electronics has grown very big very fast.
It started by making small precision parts but now builds parts for iPhones.
It also wants to make computer chips, the tiny brains inside phones and computers.
Making chips is very hard and very expensive.
The company has already spent lots of money on new factories.
One big factory is being built in Dholera, Gujarat, and another in Assam.
Right now, the company is losing money because it is spending so much.
Many companies want to make things outside of China, and India is trying to become a place where electronics are made.
Tata Electronics is trying to be at the center of that.
The next leader of Tata Sons will have to figure out how to make this huge project earn money.
It is a big and important gamble.
Tata Electronics has grown into a Rs 1,31,082-crore company employing 86,466 people.
The firm reported a net loss of Rs 1,611 crore in FY26 despite massive investments.
It assembles iPhones for Apple in India and manufactures electronic components.
It is building a Rs 91,000-crore semiconductor fab in Dholera, Gujarat, and a Rs 27,000-crore assembly and testing plant in Assam.
The next Tata Sons chairman faces the challenge of making the build-out consistently profitable.
- Who
- Tata Electronics, part of the Tata Group under Tata Sons chairman N Chandrasekaran
- What
- A fast-growing electronics and semiconductor company that remains loss-making while executing a massive investment programme
- Where
- India, including Dholera, Gujarat, and Assam
- When
- Financial year 2026 (FY26)
- Why
- To capitalise on global companies seeking alternatives to China and India's push to become a manufacturing and semiconductor hub
Strategic bet on growth
Demand for results
The expansion gamble
Strategic bet on growth
Tata Electronics is a 'sunrise business' with strong regulatory tailwinds for contract manufacturing and semiconductors, squarely positioned where global tech firms seeking China alternatives meet India's manufacturing ambitions.
Demand for results
The investments are enormous and the company has yet to show results, reporting a Rs 1,611-crore loss in FY26; scaling up and delivering profits will be the defining challenge.
Semiconductor credibility
Strategic bet on growth
Breaking ground on fabs in Dholera and Assam positions India as an emerging semiconductor hub with powerful long-term opportunity.
Demand for results
Building the plants is only the first hurdle; the company must still master chip design, product quality, yields and manufacturing efficiency while winning customer credibility and managing a rapidly grown workforce.
Key facts
- Company
- Tata Electronics
- Company size
- Rs 1,31,082 crore
- Net loss (FY26)
- Rs 1,611 crore
- Employees
- 86,466
- Dholera fab investment
- Rs 91,000 crore
- Assam facility investment
- Rs 27,000 crore
- Apple supply chain role
- iPhone assembly and component manufacturing
- Parent group leadership
- N Chandrasekaran, Tata Sons chairman
Quotes
Pareekh Jain
Founder and chief executive, EIIRTrend, a technology advisory firm
“Tata Electronics will continue to be the sunrise business since there are distinct regulatory tailwinds for contract manufacturing and semiconductor manufacturing. However, the challenge will be to scale up and show results since the investments in the business are also huge.”
financialexpress.com







