June 4, 2025 /SemiMedia/ — Tata Electronics is in advanced talks to acquire a semiconductor plant in Malaysia as part of its strategy to strengthen its assembly, testing, marking and packaging (ATMP) capabilities. The company is evaluating multiple candidates, including SilTerra, a wafer foundry owned by Dagang NeXchange Berhad (DNeX), as well as OSAT operations of Globetronics and assets from X-FAB.

The acquisition push is being led by KC Ang, who assumed the role of President of Tata Semiconductor Manufacturing in April 2025. According to sources familiar with the matter, SilTerra and Globetronics are among the top contenders under consideration. Discussions have been underway since April.

Malaysia is seen as a cost-effective gateway into the global semiconductor ecosystem. For Tata, this move offers a chance to gain operational expertise and develop Indian talent to manage future advanced semiconductor facilities.

Parv Sharma, Senior Analyst at Counterpoint Research, said that a successful deal would significantly strengthen Tata’s ATMP capability while helping to mitigate risks from current semiconductor tariffs and enhance the resilience of its global supply chain.

Foxconn, a shareholder in DNeX, previously signed a memorandum of understanding in 2022 to build a 12-inch wafer plant in Malaysia, further underscoring the country's growing relevance in global chip manufacturing.