Tata Group and Intel partnership reshaping India’s chip path

Tata Group and Intel Corporation have agreed to explore a broad technology collaboration aimed at strengthening India’s semiconductor and electronics manufacturing base. The move is framed as a step towards building geo-resilient supply chains inside the country and meeting the rising demand for advanced computing.

The scope of the alliance

Under a Memorandum of Understanding, both companies intend to examine several areas of joint work. These include manufacturing and packaging of Intel products for Indian markets at Tata Electronics’ upcoming semiconductor fab and OSAT facilities. They also plan to look at advanced packaging capabilities within India.

Another focus area is the rapid scale-up of AI PC solutions for consumers and enterprises, with India expected to be among the top five global markets by 2030. The companies said this work would combine Intel’s AI compute reference designs with Tata Electronics’ Electronics Manufacturing Services capabilities and wider reach through Tata Group companies.

Stakeholders outline the opportunity

N Chandrasekaran, Chairman, Tata Sons, said the group is committed to developing a strong semiconductor industry in India. He noted that the alliance with Intel would support this goal and help build a broader technology ecosystem. According to him, it positions the companies to capture the growing AI opportunity.

Lip-Bu Tan, CEO, Intel Corporation, said Intel’s ongoing innovation aims to expand its reach and accelerate growth. He described India as one of the world’s fastest-growing compute markets, driven by rising PC use and fast AI adoption, and said the collaboration with Tata presented a significant opportunity to scale.

Dr Randhir Thakur, CEO & MD, Tata Electronics, said the MoU fits with the company’s plans across EMS, OSAT and the semiconductor fab. He added that the collaboration would bring cost advantages, quicker time-to-market and greater operational agility, supporting the demand for next-generation AI compute in India.

Why this matters for India’s semiconductor ambitions

The proposed collaboration arrives at a time when India is attempting to reduce dependence on global supply chains and push domestic manufacturing. Hardware enablement, advanced packaging and localised AI PC solutions are key parts of this effort.

If the exploratory work progresses, it could help build capabilities across the semiconductor value chain, from design and manufacturing to assembly and test. It may also give enterprise buyers and consumers better access to locally produced compute hardware tailored for AI-driven workloads.

The road ahead

The MoU marks an early step rather than a finished plan. However, the combination of Tata’s manufacturing push and Intel’s global technology roadmap places the alliance at a strategic intersection. It signals intent to meet India’s computing needs locally and support future demand in AI, PCs and systems manufacturing.

For now, both companies are positioning the initiative as a foundation for a more resilient and competitive semiconductor ecosystem inside India.

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