India’s Tata group is reportedly negotiating an opportunity with three of the country’s states to build a semiconductor assembly-and-test unit. The move comes amid the ongoing chip shortage that has severely hit global producers.

The industrial group, one of the country’s oldest, is in search of land for an outsourced semiconductor assembly and test (OSAT) plant, and is currently in talks with the southern states of Tamil Nadu, Karnataka and Telangana, according to unnamed sources, as quoted by Reuters.

With potential investments of up to $300 million, the factory is expected to package, assemble and test foundry-made silicon wafers, and turn them into finished semiconductor chips. (RT)