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Tata subsidiary Tejas Networks acquires fabless IC startup

Tata's subsidiary Tejas Networks has announced to acquire Bengalore-based fabless IC startup Saankhya Labs to build a global telecom equipment company, indicating accelerated investments from Tata Group in the semiconductors sector.

According to the press release published on Tejas Networks' official website, the networking equipment company will acquire a 64.4% stake in Saankha Labs for INR2,839.4 million in cash in the first round and will buy the remaining 35.6% shares in a merger process or a secondary acquisition.

Sanjay Nayak, the CEO and managing director of Tejas Networks, said that the deal would help Tejas Networks create a global telecom equipment company, expand wireless product offerings, complement existing 4G/5G RAN products, and prepare for the opportunities in the O-RAN and 5G broadcast space.

Tejas Networks designs, develops, and sells wireline and wireless networking products for telecommunications, internet, utilities, defense, and government applications and is one of the applicants eligible for India's Production Linked Incentive scheme for telecom equipment.

Saankya Labs develops communication semiconductor products and solutions for 5G NR, broadcast, and satellite communication applications and is among the portfolio supported by India's Semiconductor Fabless Accelerator Lab. Saankya Labs' SDR (software-defined-radio) chipsets include SL100X universal demodulator, SL900X universal modulator, SL300X universal demodulator, and SL400X mobile TV integrated receiver.

Tata Group became Tejas Networks' largest shareholder in 2021 and has announced investment plans in semiconductor manufacturing. Mint reported that Tata was discussing setting up a US$300 million semiconductor assembly plant with several states.