New Delhi — Tata Sons Chairman N. Chandrasekaran on Tuesday emphasized the importance of patient investment in strategic industries such as semiconductors, arguing that their long-term economic and technological significance outweighs the need to meet short-term development targets.
Speaking at the Bloomberg New Economy Forum 2026 in New Delhi, Chandrasekaran said India’s semiconductor ambitions should be guided by future demand and national priorities rather than rigid timelines.
He said whether semiconductor development targets are achieved in two years or three years is less important than establishing capabilities that will be essential for businesses, consumers and the broader economy.
“Directionally, if you design it on the belief that it is needed for India, it is needed for mankind and for enterprises, you will get it right. It doesn’t mean everything will be smooth,” Chandrasekaran said.
He noted that the global economy is facing an unusual combination of geopolitical disruptions, commodity price shocks and supply chain challenges, making long-term planning particularly important.
Highlighting India’s progress in electronics manufacturing, Chandrasekaran said the country’s electronics exports have increased from approximately $12 billion five years ago to $48 billion this year.
However, he cautioned that ambitious investments must be supported by sound financial management.
“You need to keep an eye on the balance sheet. So you can’t be reckless,” he said.
Chandrasekaran argued that semiconductor investments should reflect actual market demand and available technological capabilities rather than pursuing the most advanced manufacturing processes simply for the sake of technological leadership.
He said announcing plans to manufacture 2-nanometer chips would not necessarily make commercial sense, emphasizing that Tata must align its semiconductor strategy with customer needs.
He also acknowledged that India needs international technology partners because the country does not yet possess all the capabilities required to develop a comprehensive semiconductor manufacturing ecosystem.
According to Chandrasekaran, major investment decisions should be evaluated based on their strategic importance to India, benefits to businesses and consumers, employment generation and long-term financial viability.
While the need for domestic semiconductor capabilities is clear, he said questions remain about how quickly production should expand and which technologies deserve priority.
Chandrasekaran also challenged the view that building resilient supply chains necessarily reduces operational efficiency.
In an increasingly unpredictable global environment, he argued, designing businesses to withstand disruptions can itself improve efficiency by preventing costly interruptions.
He cited a cyberattack that disrupted production at Jaguar Land Rover for nearly six weeks, along with shortages of critical components such as magnets that can bring automotive manufacturing to a halt.
Such incidents demonstrate the financial consequences of supply chain vulnerabilities and the importance of strengthening operational resilience, he said.
Despite these challenges, Chandrasekaran expressed confidence in the Tata Group’s performance, saying the conglomerate remains on track to deliver double-digit growth while maintaining its profit margins.
His remarks highlighted the balance between strategic ambition and financial discipline as Tata expands its investments in semiconductors and other advanced manufacturing industries. (Source: IANS)
