Tata Projects to focus on building chip factories

Tata Projects Ltd expects to earn around 20% of its revenue from building factories for semiconductor manufacturing by FY25-26, its managing director, Vinayak Pai, said in an interview.

“One of our strong focus areas is design and EPC (engineering, procurement and construction) of state- of-the-art gigafactory for semiconductor and electronics manufacturing. We can leverage our significant experience in electronics and solar panel manufacturing facilities as well as data centres to deliver value to our customers for semiconductor and chip manufacturing,” Pai said.

Tata Projects is in the final stages of starting on a large “state-of-the-art semiconductor manufacturing project” that shall involve the latest construction technologies including prefab/pre-engineered/modular construction, Pai said. “We would like this business to be more than 20% of our revenue in 2025-26.”

The company feels its technical expertise in clean rooms and ultra-pure water systems will form a strong foundation for this project.

To meet its goals, it plans to ramp up its designs faster and increase focus on the use of digital tools.

Other verticals that Tata Projects sees significant opportunity in include the steel industry and metals manufacturing, Pai said.

It also has ongoing work in aviation. “Noida airport is a prominent project for us.”

We started that project that middle of last year, and we have to complete it by the end of next year,” Pai said.

In Mumbai, Tata Projects expects to complete several city related projects by FY24. These include the Mumbai metro line , Mumbai Trans harbour link - Package 2 , as well as 2 residential projects in Thane and Panvel.

Meanwhile, Tata Projects reported revenue from operations of around ₹3984.1 crore for the first quarter ended June 30th, on a loss of ₹94.37 crore.

It reported total revenue from operations of ₹5015.8 crore for FY23, on a loss of ₹364.8 crore.

It expects to breakeven in FY24 and report profits this year, Pai said.