Tata, Intel Pact Brings Chipmaking Closer to Home

The Tata group has tied up with Intel Corp. to bring high-value chipmaking and advanced packaging a step closer to India, reinforcing the country’s push for semiconductor self-reliance.

Under a newly signed memorandum of understanding (MoU), the two companies will explore manufacturing and packaging of Intel products at Tata Electronics’ upcoming semiconductor fabrication and outsourced assembly and testing (OSAT) facilities.

The collaboration also extends to advanced packaging, a high-value segment of the chip supply chain that is critical to next-generation computing and artificial intelligence workloads. 

The companies said the move would help anchor more complex semiconductor capabilities within India rather than limiting the country to back-end assembly.

Beyond manufacturing, the alliance will focus on co-developing AI-enabled personal computers (PC) and enterprise hardware for the domestic market. 

With India projected to rank among the world’s five largest PC markets by 2030, the two sides plan to tailor Intel’s computing reference designs to Indian consumers and enterprises using Tata’s manufacturing scale and market reach.

Calling the partnership a catalyst for India’s semiconductor ambitions, Tata Sons chairman N. Chandrasekaran said it would “accelerate our efforts” and help capture the “large and growing AI opportunity.”

Intel chief executive Lip-Bu Tan said the company saw “a tremendous opportunity” to scale in one of the world’s fastest-growing compute markets, driven by rising PC demand and rapid AI adoption.

Tata Electronics chief executive Randhir Thakur said the MoU aligns with the company’s roadmap across electronics manufacturing services, OSAT and chip fabrication, and would help build a “reliable and resilient” supply chain with faster time-to-market.