Tata’s Chandrasekaran urges long-term semiconductor investment despite near-term return pressures

Natarajan Chandrasekaran discusses the potential of advanced manufacturing for India in areas including semiconductors. He speaks at Bloomberg's New Economy Forum in New Delhi. (Source: Bloomberg)

N Chandrasekaran underscored India's immense promise in the semiconductor sector. He stressed the importance of thoughtful investments, aligning with market demand and financial feasibility. To bolster domestic capabilities, Tata Electronics collaborates with Taiwan's Powerchip to establish a fabrication plant in Gujarat, while Assam sees the launch of a semiconductor assembly facility aimed at fulfilling local needs.

Chips will be fundamentally required, and advanced manufacturing is here to stay, he said, adding that India has the talent, the market and the ability to step up

Tata Sons Chairman Natarajan Chandrasekaran has emphasised the strategic importance of long-term investments in semiconductors, saying their contribution to India's economic and technological future matters more than immediate financial returns.Speaking at the Bloomberg New Economy Forum 2026 in New Delhi, Chandrasekaran said businesses must navigate geopolitical uncertainty, technological transformation and commodity disruptions simultaneously.Managing Semiconductor Supply Chain Volatility: Logistics And Security Strategies For Indian Businesses Chip Manufacturing Crucial Chandrasekaran drew parallels between Tata's semiconductor ambitions and the group's historical investments in steel, power, research and science.He recalled that Tata group founder JN Tata had recognised the strategic importance of these sectors long before their commercial potential became evident.Similarly, he argued, semiconductor manufacturing should be evaluated through its long-term importance rather than its financial performance over the next two or three years.He highlighted Tata Electronics' growing role in India's electronics manufacturing sector, including increased iPhone production and exports.However, Chandrasekaran stressed that strategic investments must remain financially viable.He said companies should consider employment generation, national priorities and business sustainability while maintaining balance-sheet discipline. Global Uncertainty, Tech Disruption Raise ConcernsChandrasekaran identified technological changes, workforce restructuring and ongoing conflicts as major challenges facing businesses.He said the simultaneous nature of these disruptions had made planning increasingly difficult.Citing the impact of a cyberattack on Tata Motors subsidiary Jaguar Land Rover, he noted that the incident had disrupted production for nearly six weeks.The episode demonstrated why companies must invest in operational resilience while controlling costs and improving efficiency.Sunak warned that the international system was undergoing an unpredictable transition, with armed conflicts highlighting growing geopolitical instability.He said economic security had become inseparable from national security and technological capabilities.Gray, meanwhile, described technology as the defining force shaping the present era.The discussion underscored the growing importance of strategic investment, financial discipline and resilience as companies respond to rapid technological advances and an uncertain global environment.

Tata Sons Pvt. Chairman Natarajan Chandrasekaran said the group will keep building what India and the world need, including semiconductor chips, even if these projects are slow to deliver amid a tussle with owners who are pressing for quicker returns.