Tata Sons Chairman Defends Chip Bets Amid Boardroom Crisis
Natarajan Chandrasekaran defended Tata Sons' long-term semiconductor investments while facing a leadership dispute with controlling shareholder Tata Trusts over his reappointment.
Chairman Natarajan Chandrasekaran defended Tata Sons' long-term investments in semiconductor manufacturing and nation-building projects during Bloomberg’s New Economy Forum in New Delhi. He argued that high-tech bets should not be judged on short-term financial returns, stating that the group will prioritize resilience over pure efficiency in a volatile global environment.
These remarks come amid a deepening rift between Tata Sons and its controlling shareholder, Tata Trusts, which owns approximately 66 percent of the holding company. Led by Chairman Noel Tata, Tata Trusts has labeled the recent five-year reappointment of Chandrasekaran as illegal. The conflict centers on capital allocation, leadership, and whether Tata Sons should go public.
While the group's semiconductor push continues, financial results are mixed. Tata Electronics reported revenue growth to ₹1.31 trillion in FY26, though its net loss widened to ₹1,611 crore. Major projects remain underway, with an assembly and testing facility in Assam expected to start production in December and a chip fabrication plant in Gujarat slated for mid-2028.
