Shares of Tata Investment Corporation rallied 7% to hit a new 52-week high of Rs 6,958.5 in Thursday’s trade on BSE. The stock has also zoomed 33% in the last eight days.

The stock has been on the rise since the beginning of February following reports that the government has received nine bids from companies including Tata Group and Tower Semiconductor for the overhaul of its Semiconductor Laboratory (SCL) in Mohali.

The government has earmarked about $1 billion for the modernisation of the 48-year-old facility.

The state-owned plant is the only chip manufacturing unit in India that produces semiconductors for strategic and defence purposes, including for space exploration such as the Chandrayaan mission. “The need for modernisation of SCL is for a strategic purpose,” a senior government official said, adding that it is keen that a local firm gets the mandate since a lot of the work is of national importance.

The Tata Group has been preparing to enter the chip manufacturing segment in India for the past few years.

Meanwhile, according to another report, Tata Group could be exploring partnerships with either one of the two major Taiwanese chipmakers — Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group — for its proposed chip fabrication plant at Dholera in Gujarat, multiple officials aware of the development told ET.The Indian conglomerate aims to manufacture mature nodes of 65 nm (nanometre) before moving to 48 nm and then to 28 nm — which supports applications ranging from graphic processor units (GPU) to consumer electronics and the internet of things — in a few years, they added.“The Tata Group has finalised the details of the land for the plant and is likely to break ground soon,” said one person cited above.

The initial capacity of the plant is estimated to be 25,000 wafers per month, which translates to anywhere between 700-1,000 semiconductor chips per day if the unit operates at full efficiency, according to sources privy to the developments.

In January, while addressing an investment summit in Gujarat, Tata Sons Chairman N Chandrasekaran said the group will announce a “huge semiconductor fab” in Dholera that will begin operations in 2024. This will make it the first major chipmaking plant to be set up by an Indian conglomerate, fulfilling a long-standing ambition of New Delhi.

At 12.04 pm, the scrip was trading 6.6% higher at Rs 6,906 on BSE. Meanwhile, The stock has rallied over 240% in the last one year, and over 400% in the last two years.

In terms of technicals, the relative strength index (RSI) of Tata Investment Corporation stands at 79.4, signaling that the stock is in oversold territory.

Tata Investment Corporation is currently trading higher than its 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

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