Tata Sons Chairman Calls Chips 'The New Steel' As Electronics Arm Revenue Doubles

Tata Electronics nearly doubled its revenue in FY26 as the company accelerated its push into semiconductor manufacturing, prompting Tata Sons Chairman N Chandrasekaran to declare that "chips are the new steel" and position the business as a key pillar of India's technology ambitions.

In his message to shareholders in the Tata Sons FY26 annual report, Chandrasekaran said Tata Electronics is steadily building capabilities across the entire electronics value chain, from electronics manufacturing to semiconductor fabrication and chip packaging.

"Every phone, car, aircraft, hospital, power grid and AI system runs on chips," Chandrasekaran said, adding that countries without domestic semiconductor manufacturing would remain dependent on others for one of the world's most critical technologies.

Revenue Nearly Doubles In FY26

Tata Electronics reported 97% growth in revenue, which rose to Rs 1.31 lakh crore in FY26 from Rs 66,601 crore a year earlier. The strong growth has made it the fourth-largest Tata Group company by revenue, just four years after its formation.

The company also achieved operating profit break-even during the year. However, it continued to post a net loss as it increased investments in semiconductor manufacturing and electronics production. Its net loss widened to Rs. 1,611 crore in FY26 from Rs. 70 crore in the previous financial year.

Tata Sons invested another Rs. 3,000 crore in Tata Electronics during the year, taking its total investment in the company to Rs. 9,961 crore.

Also Read: Tata Group FY26 Results: Profit Climbs 52%, Revenue Crosses Rs 16 Lakh Crore

Building India's Semiconductor Ecosystem

Chandrasekaran said Tata Electronics manufactured 12% of the total phones produced by a global smartphone leader in 2025, although he did not identify the customer.

The company is also constructing India's first large-scale semiconductor fabrication plant at Dholera, Gujarat, while expanding into advanced semiconductor packaging, chip materials and indigenous chip solutions.

According to Chandrasekaran, Tata Electronics has already packaged India's first indigenous microprocessor, marking another milestone in the country's semiconductor journey.

He acknowledged that semiconductor manufacturing requires long-term investment, advanced technology, global partnerships and a highly skilled workforce, calling it one of the world's most complex industrial businesses.

Long-Term Bet On Technology

Chandrasekaran said Tata's objective extends beyond building semiconductor factories. The group aims to create a complete ecosystem by developing suppliers, research partnerships and skilled talent to support India's semiconductor industry.

"When the first 'Made in India' chips flow at scale, they will do exactly what is needed for India's technology sovereignty," he said.

As of March 2026, Tata Electronics employed 86,466 people, including contractual workers. Nearly two-thirds of its workforce are women, making it one of the country's largest employers in electronics manufacturing.

Also Read: Tata Electronics' Randhir Thakur Wins India's Atmanirbharta Champion Honour

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