Intel, Tata Align As India Expands Chipmaking

Intel has signed on as a prospective customer for Tata Electronics’ upcoming semiconductor facilities, marking a significant boost to India’s ambition of emerging as a global chip manufacturing hub.

Tata Electronics, the electronics and high-tech manufacturing arm of the Tata group, is investing around USD 14 billion to set up India’s first semiconductor fabrication plant in Gujarat and an Outsourced Semiconductor Assembly and Test (OSAT) facility in Assam.

Both projects have received substantial government incentives under India’s semiconductor mission.

As part of a newly signed memorandum of understanding, Intel and Tata will explore opportunities in chip manufacturing, advanced packaging and the production of Intel products for local markets at the upcoming facilities.

The partnership will also assess avenues to rapidly scale AI PC solutions in India, which both companies project to become a top-five global market by 2030.

“We see this as a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets, fuelled by rising PC demand and rapid AI adoption across India,” Intel Corporation CEO Lip-Bu Tan said in a statement.

Tata Electronics said the collaboration will draw on Intel’s AI compute reference designs and its own electronics manufacturing services capabilities, supported by the broader reach of Tata Group companies.

Tata Sons chairman N. Chandrasekaran said, “We are excited to collaborate with Intel, and this strategic alliance would accelerate our efforts. Together, we will drive an expanded technology ecosystem and deliver leading semiconductors and systems solutions, positioning us well to capture the large and growing AI opportunity.”

The partnership comes as the Indian government intensifies efforts to strengthen domestic chip production and reduce reliance on global supply chains, positioning the country as an emerging semiconductor destination.