Bharat Electronics Ltd (BEL) and Tata Electronics signed a Memorandum of Understanding to jointly develop indigenous semiconductor solutions. The collaboration aims to strengthen India’s semiconductor ecosystem by focusing on fabrication, assembly, testing, and design services. This strategic tie-up is intended to reduce dependency on foreign technology, particularly in defense and high-tech electronics applications.
State-owned defense Public Sector Undertaking Bharat Electronics Limited (BEL) and leading electronics manufacturer Tata Electronics have signed a Memorandum of Understanding (MoU) to jointly develop indigenous semiconductor solutions aimed at strengthening India’s electronics supply chain.
The collaboration was formally announced on June 6 and will cover areas such as semiconductor fabrication, Outsourced Semiconductor Assembly and Testing (OSAT), and end-to-end design services. Tata Electronics will offer these services as part of the strategic collaboration.
The agreement is designed to meet BEL’s current and future semiconductor requirements, including Microcontrollers (MCUs), Systems-on-Chip (SoCs), Monolithic Microwave Integrated Circuits (MMICs), and other mission-critical processors. This move aligns with India’s long-term vision of reducing reliance on imported semiconductors, especially in defense technologies.
BEL, headquartered in Bengaluru, Karnataka, is a leading defense electronics company with significant contributions to India’s defense systems, including radars, control systems, missile systems, and avionics. Its recent delivery of the Quick Reaction Surface-to-Air Missile (QRSAM) and next-gen corvettes to the Indian Navy underscores its expanding capabilities. BEL’s systems were deployed in frontline areas during Operation Sindoor, further establishing its role in national defense.
Beyond defense, BEL is diversifying into civil aviation, cybersecurity, homeland security, and anti-drone systems. It is also targeting export revenues of around USD 120 million in FY25, with a projected growth rate of over 20% in the next 1–2 years.
Tata Electronics, a Tata Group company, is fast emerging as a powerhouse in electronics manufacturing, including EMS, semiconductor design, foundry services, and OSAT. The company is currently collaborating with Taiwan-based PSMC (Powerchip Semiconductor Manufacturing Corporation) to set up India’s first AI-enabled semiconductor fabrication plant.
This MoU is expected to significantly boost India’s indigenous capabilities in semiconductors, especially in sectors like defense, communication, and avionics, where security and self-reliance are crucial.
By joining forces, BEL and Tata Electronics are set to accelerate India’s journey toward semiconductor independence while fostering innovation in high-tech manufacturing.
