BEL and Tata Electronics to co-develop indigenous semiconductor solutions

The purpose of the MoU is to meet current as well as future requirements of BEL, which include Microcontrollers (MCUs), Systems-on-Chip (SoCs), Monolithic Microwave Integrated Circuits (MMICs), and other processors.

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Defence PSU Bharat Electronics (BEL) will be jointly developing indigenous electronics and semiconductor solutions with Tata Electronics, a company statement said on June 6, in an attempt to enhance India's chip-making ecosystem.

BEL and Tata Electronics will explore opportunities to collaborate in Semiconductor Fabrication and Outsourced Semiconductor Assembly and Testing (OSAT), along with design services solutions, which will be offered by Tata Electronics.

The purpose of the MoU is to meet current as well as future requirements of BEL, which include Microcontrollers (MCUs), Systems-on-Chip (SoCs), Monolithic Microwave Integrated Circuits (MMICs), and other processors. The pact can potentially reduce India's dependency on foreign suppliers for critical defense technology.

BEL's systems were at several forward areas during the recent Op Sindoor, providing offensive and defensive applications developed by BEL. The company has delivered QRSAM (Quick Reaction Surface-to-Air Missile) to the armed forces, which has been touted as one of its biggest orders, along with next-generation Corvettes for the Indian Navy. BEL is also working on radars and control systems.

The centre has recently issued an emergency procurement order, which includes equipment from Bharat Electronics, after the recent border hostilities with Pakistan.

BEL has been making efforts to expand its offerings in non-defence domain as well, some of recent initiatives being in homeland and cyber security, civil aviation, space electronics, anti-drone systems, unmanned systems, and others. BEL is also trying to ramp up its share of export revenue, with a targetted orderbook of around $120 million this year, which is a growth of more than 15% compared to FY25. In the next 1-2 years, BEL said it is targetting an export orderbook growth of more than 20% growth.

Tata Electronics is into electronics manufacturing, with fast-emerging capabilities in electronics manufacturing services (EMS), semiconductor assembly and test, foundry and design. Read More

The MoU is expected to boost India's efforts towards securing indigenous supply chains in electronics and semiconductor solutions. A tie up with Tata Electronics would be seen as advantageous for BEL in order to develop indigenous chips for radars, avionics, communication systems. Tata Electronics is already partnering with PSMC, to build India's first AI-enabled semiconductor fab, leveraging PSMC's expertise.