Tata Electronics has taken a decisive step forward in India’s semiconductor mission, securing Intel Corporation as a prospective customer for its upcoming fabrication and assembly facilities. The agreement comes as Tata invests $14 billion to build the country’s first semiconductor fab in Gujarat along with an advanced testing and assembly unit in Assam. The partnership strengthens India’s positioning in the global chip ecosystem—an effort closely aligned with Prime Minister Narendra Modi’s strategic push to elevate the country alongside semiconductor leaders such as Taiwan.
The development signals a significant boost for Tata’s semiconductor roadmap and underscores the strategic stakes of India’s entry into high-value chip manufacturing. N Chandrasekaran, Chairman of Tata Sons, emphasized the long-term vision behind the project, stating, “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.”
Intel’s leadership echoed this optimism, highlighting both the scale of the Indian market and the timing of the collaboration. CEO Lip-Bu Tan noted, “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.” As global demand for compute power skyrockets, India’s expanding digital ecosystem presents a compelling opportunity for cross-border semiconductor partnerships.
Tata Electronics’ President, Dr. Randhir Thakur, reaffirmed the alignment of the MoU with the company’s broader strategic path across manufacturing and supply-chain capabilities. He stated that the agreement “aligns with Tata Electronics’ roadmap across EMS, OSAT, and Semiconductor Fab, enabling a reliable and resilient supply chain for our customers.”
Beyond chip fabrication, the collaboration will also explore ways to accelerate adoption of AI-powered PCs across both consumer and enterprise markets. With India projected to emerge as one of the world’s top five compute markets by 2030, the partnership positions both companies to capture long-term growth while contributing to a more resilient global semiconductor supply chain.
