Analog Devices, Inc. (ADI.US) is in talks with the Tata Group to manufacture semiconductors in India.

US chip maker Analog Devices, Inc. (ADI.US) said on Wednesday that the company has signed an agreement with India's Tata Group to explore manufacturing semiconductor products in India. Tata Electronics, a subsidiary of Tata Group, will invest $14 billion to build India's first semiconductor wafer fab in Gujarat and a chip assembly and testing factory in Assam. Earlier this year, the Indian government approved the construction of Tata Group's semiconductor factory. In a statement, Analog Devices, Inc. said that Tata Electronics and Analog Devices, Inc. plan to explore the opportunity to produce Analog Devices, Inc. products at Tata Electronics factories in Gujarat and Assam. Under the agreement, Tata Group will also use Analog Devices, Inc. products in Tata Motors' electric vehicles and Tejas Networks' telecom infrastructure. The two companies did not specify which products will be manufactured in India and which products Tata will use. Indian Prime Minister Modi has been pushing for India to compete with global semiconductor giants, aiming to make India a global chip manufacturer, despite initial setbacks to the plan. Earlier this month, the western Indian state of Maharashtra announced that the Adani Group and Israel's Tower Semiconductor Ltd (TSEM.US) plan to invest $10 billion to build a semiconductor manufacturing plant. Indian infrastructure giant Larsen & Toubro's automotive chip division also plans to establish a factory. Multinational companies such as NXP Semiconductors NV (NXPI.US) and Micron Technology, Inc. (MU.US) have also announced plans to invest and build facilities in India.