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Titan’s Subsidiary, TEAL to Invest in Semiconductor Fab Equipment Factory

Titan Engineering Automation Limited Logo

Titan Engineering and Automation Ltd. (TEAL), a subsidiary of the TATA Group company, Titan, will invest Rs. 220 crore to expand the manufacturing of equipment used in semiconductor wafer fabrication. The company will make this investment in its facilities in Hosur, Tamil Nadu over a period of five years.

This information was given to the Financial Express by TEAL’s CEO, Mr. N.P Sridhar.

Production to Grow 10 Times Existing Capacity – TEAL CEO

Mr. Sridhar told Financial Express as reported on 15th December 2023, that with this expansion the company expects its production capacity to increase by 10 times.

Commenting on their TEAL’s operations, Mr. Sridhar said, “We are now making 200-250 components required for our semiconductor manufacturer client“. He did not disclose the name of the aforementioned US-based client.

Land Acquired for dedicated Semiconductor Business Unit, Investment in Progress

TEAL has already acquired 3 acres of land adjacent to its existing manufacturing facility in Hosur to set up a new factory. The company expects to shift its semiconductor-related business to this upcoming facility by December 2024.

Speaking about the status of TEAL’s investment, Mr. Sridhar said“We have invested Rs 30-40 crore already in setting up processing lines and a 1,000-class cleaning room”.

TEAL’s Recent Entry into Semiconductor Fab Equipment Manufacturing

Titan Engineering and Automation entered into the semiconductor fabrication equipment manufacturing after the CoVID pandemic, and started supplying equipment to a US-based company in 2022.

TEAL’s manufacturing division caters to areas such as defence and aerospace, but during the industrial activity slump owing to the CoVID pandemic, the company started identifying opportunities to serve other industries.

Speaking about the rationale behind the company’s entry into semiconductor fabrication equipment manufacturing, Mr. Sridhar added, “The semiconductor wafer fab equipment space is akin to aerospace engineering requiring precision machinery and process discipline”. He further added, “We started supplying components in 2022 and are probably the first Indian company in the supply chain for semiconductor wafer fab equipment.

About Tata Engineering & Automation Ltd.: Tata Engineering & Automation Ltd. is a wholly-owned subsidiary of Titan Company Ltd., and is involved in the design and manufacturing of components for industries such as defence, aerospace, and semiconductor fabrication. The company is also involved in assembly and testing of these components. Apart from this, the company also provides automation solutions.