Natarajan Chandrasekaran Defends Tata Semiconductor Bets Amid Boardroom Crisis

Tata Sons Chairman Natarajan Chandrasekaran defended the conglomerate's long-term investments in semiconductor manufacturing during the 2026 Bloomberg New Economy Forum in New Delhi. He argued that high-tech nation-building projects should not be judged by short-term financial returns, emphasizing that India's engineering talent and domestic market position the country to integrate into global supply chains.

These remarks come amid a deepening boardroom crisis. Tata Trusts, which owns approximately 66 percent of Tata Sons, has labeled Chandrasekaran's recent five-year reappointment as chairman illegal. Noel Tata, Chairman of Tata Trusts, has pressed for quicker returns and questioned capital allocation decisions, while disagreements persist over whether Tata Sons should go public.

Operationally, the group is pursuing a massive manufacturing push through Tata Electronics. This includes a ₹91,000 crore fabrication plant in Dholera, Gujarat, and a ₹27,000 crore assembly and testing facility in Jagiroad, Assam. The Assam facility is expected to begin operations in December, while the Gujarat plant is slated for mid-2028. While reports differ on the primary partner for the Dholera plant, citing either ASML Holding or Powerchip, both highlight the necessity of international partnerships.

Despite Tata Electronics seeing its net loss widen to ₹1,611 crore in FY26, Chandrasekaran maintained that the group's direction is certain. He cautioned against reckless investments in advanced 2-nanometer chips, urging a focus on commercial viability and operational resilience over pure efficiency in a volatile global environment.