N. Chandrasekaran’s decision to step down as Tata Sons chairman intensifies scrutiny over the conglomerate’s risky expansion into semiconductors and technology, amid internal disputes and mounting losses across key ventures.
N. Chandrasekaran’s decision not to seek another term as chairman of Tata Sons has deepened questions over the direction of one of India’s most powerful conglomerates, just as it pushes ahead with some of its biggest and riskiest bets. According to CNBC, the move has put fresh scrutiny on Tata’s plans in aviation, technology and semiconductors, including its effort to build India’s first chip plant and expand its role in Apple’s supply chain.
The semiconductor project in Dholera, Gujarat, announced by Tata Electronics in 2024, is central to that ambition. The company said the facility, being developed with Taiwan’s Powerchip Semiconductor Manufacturing Corporation, carries an investment of up to 91,000 crore rupees, or about $11bn, and is intended to produce chips for automotive, computing, communications and artificial intelligence uses. Tom’s Hardware reported that ASML has also agreed to help equip the plant, which is expected to reach a monthly output of 50,000 wafers.
But the timing of Chandrasekaran’s exit has sharpened a longstanding dispute over capital allocation inside the group. NDTV and Mint reported earlier this year that the Tata Sons board deferred a decision on a third term after concerns were raised by Tata Trusts chairman Noel Tata about losses in some businesses and the pace of investment. CNBC reported that Chandrasekaran said the renewal had been pending for months and had not gone through because one board member did not support it.
That tension matters because many of Tata’s newer ventures are still absorbing cash rather than generating it. CNBC reported that Tata Sons acquired Air India in 2022 and expanded into iPhone manufacturing through the purchases of Wistron and Pegatron operations, becoming India’s largest Apple supplier. The company’s latest annual report showed consolidated net profit fell 35% in the year to March 2026 to 266 billion rupees, as losses mounted at Air India, Tata Digital and Tata Electronics, while the market value of listed Tata companies dropped 12% over the same period.
The broader question now is whether Tata can keep funding these long-term projects while its most reliable profit engine, Tata Consultancy Services, faces pressure from artificial intelligence-led changes in the IT sector. Reuters has reported on similar concerns about the group’s dual power structure, with Tata Sons seeking aggressive expansion and Tata Trusts pushing for caution. Chandrasekaran had been seen as a steadying hand after Ratan Tata’s death, so his departure raises fresh doubts about how much continuity remains at the top of the group.
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