N Chandrasekaran to lead Tata Electronics amid $14 bn semiconductor push

N Chandrasekaran, the chairman of Tata Sons, is set to assume the additional role of chairman at Tata Electronics. This transition comes as Tata Electronics earmarks around $14 billion towards venturing into the semiconductor industry. Chandrasekaran will succeed Banmali Agrawala, who has served in this post for the past few years, pending regulatory approvals. Agrawala, a key figure within Tata Sons, will now take on an advisory role within the group.

Chandrasekaran’s appointment underscores the strategic significance that the semiconductor business holds for the conglomerate, industry insiders told The Economic Times (ET). 

His influence was pivotal in convincing Randhir Thakur, a former executive from Intel Foundry Services, to join Tata Electronics as CEO and MD in 2023. Additionally, Srinivas Satya, previously the country president of the semiconductor products group at Applied Materials, was appointed as Tata Electronics’ chief supply chain officer and president of the components business earlier this year.

These strategic hires, coupled with Chandrasekaran’s focused leadership, position Tata Electronics at the forefront of India’s electronics manufacturing landscape. The company has bolstered its team by recruiting 50-60 senior-level expatriates with expertise in semiconductor technology, strategic planning, and design.

“The board of Tata Electronics now has the management width and heft to scale up the business. It is now wooing top tier global clients and may surpass growth expectations. The challenge earlier was talent and technology, and the company is chasing both aggressively to drive growth,” an executive close to the company was quoted as saying by ET.

“Since this is a completely greenfield territory for Tata, Tata Electronics will need a more strategic, measured and bold approach moving towards the ‘One Tata’ vision laid out by Chandrasekaran,” said Counterpoint Research vice president Neil Shah. “From semiconductor fabs to finished goods, electronics factories are a double digit billion-dollar opportunity and to ensure it has a strong pipeline will warrant a greater involvement from Mr Chandrasekaran himself,” he added.

Established in 2020, Tata Electronics is the sole Indian vendor assembling iPhone enclosures for Apple. The company plans to scale up its existing facility in Hosur, Tamil Nadu and has acquired a facility in Karnataka previously operated by Taiwan’s Wistron. Furthermore, reports suggest that Tata Electronics is looking to acquire Pegatron’s facility in Tamil Nadu to expand its production capacity further.

Amidst supply chain disruptions exacerbated by the Covid-19 pandemic and evolving geopolitical dynamics, Indian entities like the Tata Group are seizing opportunities to diversify and cater to changing market demands, particularly as renowned brands seek alternatives to manufacturing in China.

First Published: May 13 2024 | 9:48 AM IST