Mumbai: In a major push to position India as a global semiconductor hub, Tata Electronics has signed a strategic agreement with Intel to manufacture, test, and package the chipmaker’s products at its upcoming facilities in Gujarat and Assam. The Tata Group is investing $14 billion in these semiconductor units.

Tata Electronics’ chip-testing facility in Assam will become operational by the second quarter of next year, while the Gujarat fabrication plant is slated to begin chip production by 2027.

As part of the Memorandum of Understanding (MoU), 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. In addition, Intel and Tata intend to explore opportunities to rapidly scale tailored AI PC solutions for consumer and enterprise markets in India, which is projected to be a global top-five market by 2030. This collaboration would leverage Intel’s AI compute reference designs, Tata Electronics’ industry-leading Electronics Manufacturing Services (EMS) capabilities, and broad access to the Indian market through Tata Group companies, an official release stated.

N. Chandrasekaran, Chairman, Tata Sons, said, “The Tata Group is deeply committed to developing a robust semiconductor industry in India. 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.”

Lip-Bu Tan, CEO, Intel Corporation, said, “Intel’s technology has driven decades of advancement in computing, and as we continue to innovate, our ambition is to broaden our reach, accelerate growth, and deliver even greater value to our customers. 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.”

Dr. Randhir Thakur, CEO & Managing Director, Tata Electronics, said, “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, greater operational agility, and enable Intel products to capture the surging demand for next-generation AI compute in India.”