Tata Electronics partners with Intel to boost India’s chipmaking and AI PC ambitions

Tata Electronics has secured Intel as the first major prospective customer for its upcoming semiconductor fabs in Gujarat and Assam, with both companies partnering on advanced packaging, manufacturing, and AI-driven PC solutions for India’s rapidly expanding market.

Tata Electronics has signed a memorandum of understanding (MoU) with Intel, marking the tech giant as the first major prospective customer for Tata’s upcoming semiconductor facilities in India. The partnership also expands into advanced chip packaging and joint efforts to accelerate AI-enabled PC solutions for the domestic market.

The Tata Group is currently constructing two major semiconductor units valued at around $14 billion — a fabrication plant in Gujarat and an Outsourced Semiconductor Assembly and Test (OSAT) facility in Assam. These projects form a key pillar of India’s strategic push to build a resilient domestic semiconductor ecosystem.

Under the collaboration, both companies will explore manufacturing and packaging of Intel products at Tata Electronics’ fabrication and OSAT facilities once they become operational. The agreement aims to localize critical chip production processes and strengthen supply chains for emerging technology markets.

Collaboration extends to advanced packaging and AI PC innovation

As part of the partnership, Intel and Tata Electronics will work together on advanced chip packaging capabilities in India, a domain crucial for next-generation AI and high-performance computing architectures. The companies also plan to jointly scale AI PC solutions tailored for both consumer and enterprise segments.

With India projected to become one of the world’s top five PC markets by 2030, the collaboration will combine Intel’s AI compute reference designs with Tata Electronics’ growing Electronics Manufacturing Services (EMS) capabilities. Access to Tata Group’s extensive presence across sectors is expected to fast-track the adoption of AI-enabled devices in the country.

Lip-Bu Tan, CEO of Intel Corporation, emphasized the scale of the opportunity: “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.”

Randhir Thakur, CEO and Managing Director of Tata Electronics, said the partnership reinforces the company’s long-term strategy. “This MoU aligns with Tata Electronics’ roadmap across EMS, OSAT, and Semiconductor Fab, enabling a reliable and resilient supply chain for our customers. This collaboration would drive cost competitiveness, faster time-to-market, and greater operational agility.”

The agreement marks a significant milestone for India’s ambitions to emerge as a global semiconductor and electronics manufacturing hub, while strengthening the country’s position in the future of AI-driven computing.