Intel joins Tata to manufacture semiconductors at new India facilities

US-based chip maker Intel has signed an agreement with Tata Group to manufacture and assemble semiconductors in India, marking a major step in India’s push to build a domestic chip supply chain, the Indian conglomerate said on Monday.

Under the agreement, Intel and Tata plan to explore opportunities to rapidly scale tailored AI PC solutions for consumer and enterprise markets in India, which is projected to be among the top five markets globally by 2030.

“Intel and Tata intend to explore manufacturing and packaging of Intel products for local markets at Tata Electronics’ upcoming Fab and OSAT (Outsourced Semiconductor Assembly and Test) facilities, as well as a collaboration for advanced packaging in India,” the Tata Group statement said.

Tata Group is setting up a chip manufacturing plant in Dholera, Gujarat, and a semiconductor assembly and packaging facility in Assam, with a total investment of Rs 1.18 lakh crore.

“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.

The collaboration will leverage Intel’s AI compute reference designs, Tata Electronics’ Electronics Manufacturing Services (EMS) capabilities, and the group’s broad access to the domestic market.

“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,” Tata Sons Chairman N Chandrasekaran said.