Tata’s potential acquisition of a plant in Malaysia could boost nation’s tech sector—PublicInvest

• PublicInvest noted that the potential acquisition initiatives are being led by Tata Semiconductor Manufacturing president KC Ang, who previously served as vice-president of operations at SilTerra Malaysia.

KUALA LUMPUR (June 4): Tata Electronics’ potential entry into Malaysia through the acquisition of a fabrication, or outsourced semiconductor assembly and test (OSAT) plant could significantly revitalise the country’s technology sector, according to PublicInvest Research.

The house, in a note on Wednesday, said this strategic move is expected to enhance Malaysia’s global market share in crucial chip packaging, assembly, and testing services.

The Economic Times reported on Tuesday that Tata Electronics was in talks with semiconductor players X-Fab, Dagang Nexchange Bhd (KL:DNEX) and Globetronics Technology Bhd (KL:GRONIC) to acquire fabrication or OSAT plant in Malaysia to improve its knowledge and talent base, before entering the chip assembly and packing business in India.

As a wholly owned subsidiary of Tata Sons, Tata Electronics is a leading integrated semiconductor player, with strong capabilities spanning electronics manufacturing services, OSAT, semiconductor foundry, and design services, added PublicInvest.

“Amid recent US tariff changes, the company plays an increasingly important role in Apple’s iPhone supply chain—as both a major assembler and component manufacturer, and is emerging as a key competitor to Taiwan’s Foxconn. Apple is positioning India as an alternative manufacturing base to China, as tensions between the US and China escalate,” said the research firm.

This is part of Apple’s broader strategy to establish India as an alternative manufacturing hub to China, with India now contributing approximately 18% to global iPhone production, it added.

PublicInvest noted that the potential acquisition initiatives are being led by Tata Semiconductor Manufacturing president KC Ang, who previously served as vice-president of operations at SilTerra Malaysia.

“Based on our understanding, discussions with various Malaysian players have been ongoing since April. The potential acquisitions would allow Tata to tap into Malaysia’s mature ecosystem and deep expertise in assembly, testing, and advanced packaging. This move would also help Tata Electronics mitigate risks associated with current semiconductor tariffs, and provide a diversified platform to serve a broader global customer base,” it added.

PublicInvest said companies such as Globetronics and DNEX’s 60%-owned SilTerra are considered attractive acquisition targets due to their relatively low entry costs.

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