TATA Group & Renesas: The joy of two brands high-fiving!

Created on 18 Jul 2022

Wraps up in 4 Min

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Updated on 01 Sep 2022

Why should you care about semiconductor chips? You are not into machines. 
But still, semiconductor chips are essential to you because they are a part of your everyday living. 
From the LED bulbs in your washroom to your sophisticated high-end play station, semiconductors are used everywhere. They are in your smartphone, your computer, your air conditioner, your car, and even in your refrigerator. 

In the light of the recent shortage of semiconductor chips in India, the TATA group companies signed a deal with Japan’s Renesas Electronics. This tie-up between TATA and Renesas electronics corporation took place on 29th June 2022. 
As per the tie-up, the semiconductor chip maker will work in association with the TATA group companies through the firm Tejas Network. They will first focus on making domestic product solutions and then move toward global markets. The partnership is set to solve the production cutbacks in electronics due to semiconductor chip shortages.

Let us learn more about this strategic partnership between TATA and Renesas. 

Major Areas of Collaboration

The TATA group and Renesas Electronics Corporation have entered into an alliance that is non-exclusive in nature. They are eying to develop an emerging automotive technology, such as the ADAS (Advanced Driver Assistance System). Another area for collaboration is the 5G wireless network technology.

The companies plan to implement the next-generation network solutions in the wireless category. They aim to design and develop semiconductor works for the RU (Radio Units) that telecom companies use for 4G, 5G, O-RAN (Open Radio Access Network) and more. With collaboration, the duo plans to enable open and flexible radio access networks in 5G and create space for more comprehensive interoperability. 

The Renesas electronic corporation also plans to establish an innovation centre in India. The company aims to do this with the TCS (Tata Consultancy Services) to develop comprehensive system solutions. These solutions would be applicable to a wide range of companies. 

Renesas also plans to establish other specialised centres like the Joint System Solution Development Centre with the TCS in Bangalore. The aim of this centre would be to develop IoT (Internet of Things) based comprehensive system solutions. These solutions will also have use cases in infrastructure, automotive and industrial segments. 

Being technology and business partners, this association also announced the development of the Next Generation Electronic Vehicle Innovation Centre (NGEVIC) earlier in March 2022. The Renesas electronics corporation launched this project with TATA Elxsi.

Both Renesas electronics corporation and TATA Motors together become India’s most prominent manufacturers of Avant grade automotive electronic vehicles. They aim to increase scalability and leadership performance in electronic vehicles. 

Let us learn about these partnering companies in detail.

About the Home Company

TATA Group’s Tata Motors is one of the largest manufacturers of electric automobiles in India. Last year, TATA Motors made a four-fold jump in the sales of electric vehicles. The sales of these cars stood at 19,105 numbers in the year ending March 2022. This was around four thousand in March 2021. Following the rise in sales, the company has doubled down on its investments in this segment. 

For electric cars, manufacturers have found their power in semiconductor chips. To progress in this space, last year, the TATA group acquired stakes of 43.3 per cent in Tejas Network. This company is a specialised maker of telecom equipments in India and is based in Bengaluru. TATA Sons have furthered their stake in the company and now own more than fifty per cent of the business. Therefore, it was not surprising that they partnered with Renesas through Tejas Network. This partnership will enhance the capabilities of Tejas Network, which builds system adaptabilities for 4G mobile carriers to convert into 5G technology. This can help the carrier to set up faster data and refresh rates. 

About the Partnered Company

The partnered company, Renesas Electronics Corporation, is a Japanese (Tokyo-based) company specialised in semiconductor chip technology. The company’s single largest shareholder is the Japanese government arm which holds 20 per cent of the company. Other than this government arm, companies like Toyota and Denso have ownership of 3.9 per cent and 7.9 per cent, respectively. The Indian conglomerate, at present, has only tied up and not become a minority shareholder in the company. 

Renesas Electronics Corporation makes world-class embedded and innovative designs for semiconductors. These semiconductor solutions enhance how people live and work in several parts of the world. 

Both these companies work in the area of making vehicle centralised and zone-oriented electrical and electronic architecture, also known as the E/E architecture. Thus by collaborative technology, they aim to build smarter, safer and more sustainable E/E capabilities that can enhance the user experience. 

The Bottom Line

With this collaboration, the TATA group is set to become a semiconductor powerhouse in India. This non-exclusive partnership is a stepping stone for advanced and durable electric and electronic architecture that can make life easier. 

And, since semiconductors are used in many critical products of our daily lives, this collaboration for enhanced semiconductor supply and solutions will indirectly bring more leisure, control and sustainability to our lives. 

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Devashree Patel

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Devashree has always been passionate about finance and economics. She has an experience of 2 years of working in the finance domain. Her writing is always detailed and on to point which makes it easy to read and understand. She has a BA in Economics degree and currently pursuing MBA from NMIMS.

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