Nexperia, which is the global semiconductor manufacturer, and Tata Electronics, the new entrant in the semiconductor space, have disclosed a strategic alliance in semiconductor manufacturing, assembly and testing, and technology partnership as well as ecosystem development as both companies look to broaden their role in the global semiconductor supply chain.

The agreement provides a framework for long-term collaboration across multiple stages of the semiconductor value chain and aims to facilitate the growth plans of both organizations while fostering the development of India’s semiconductor manufacturing industry.

The partnership will be focused on three key domains, including front-end wafer fabrication, back-end assembly and testing, and joint technology, as well as ecosystem development.

As part of the manufacturing partnership, the companies are going to plan for the production of Nexperia’s MOSFET portfolio at Tata Electronics’ proposed 300mm semiconductor fabrication plant in Dholera, Gujarat. The partnership will also involve assembly and testing of discrete semiconductor products of Nexperia at the packaging and testing plant of Tata Electronics located in Jagiroad, Assam.

The partnership is aimed at enhancing manufacturing flexibility, strengthening supply chain resilience, and building up scalable production capacity to meet future demand, the companies said.

According to Nexperia interim chief executive Stefan Tilger, “Our collaboration with Tata Electronics brings together complementary strengths across technology, manufacturing, and innovation, while supporting the broader development of semiconductor capabilities in India. This framework creates new opportunities for collaboration and reinforces our commitment to serving customers through a resilient and globally balanced manufacturing network.”

Beyond production activities, the agreement also includes cooperation when it comes to research, technology development, and broader semiconductor ecosystem initiatives. Drawing on Nexperia’s expertise in discrete, power, and analogue semiconductors, and Tata Electronics’ growing manufacturing footprint, the companies will aim to support future product innovation and supply chain development.

As per Achim Kempe, the chief operations officer at Nexperia, “This collaboration represents much more than manufacturing. By combining Nexperia’s semiconductor expertise with Tata Electronics’ growing manufacturing capabilities, we are establishing a long-term partnership that supports innovation, growth, and supply resilience across the semiconductor value chain. We believe this collaboration creates a strong foundation for future manufacturing, technology development, and ecosystem growth that will ultimately benefit customers around the world.”

The deal is part of Tata Electronics’ efforts to set up an integrated semiconductor manufacturing base in India.

Says Dr. Randhir Thakur, Chief Executive and Managing Director of Tata Electronics, “This comprehensive partnership, spanning the semiconductor manufacturing value chain, represents an important step in Tata Electronics’ efforts to build a globally competitive, integrated semiconductor manufacturing ecosystem in India.”

This strategic alliance in semiconductor manufacturing fits into the growing technology and trade relationship between India and the European Union and could open up more opportunities for industrial cooperation and innovation, he said.

The announcement comes as Tata Electronics continues to make large investments in semiconductor infrastructure. The company is establishing what it calls India’s first commercial semiconductor fabrication facility in Dholera, Gujarat, and an indigenous semiconductor assembly and test facility in Jagiroad, Assam. The projects are a $14 billion total investment.

The partnership represents broader industry efforts to increase semiconductor manufacturing capacity and create more geographically diversified supply chains as demand keeps increasing across sectors such as consumer electronics, communications, energy, infrastructure, automotive and industrial.