Tata Electronics has taken a decisive leap in India’s semiconductor ambitions by securing Intel as the first major customer for its upcoming chip manufacturing facilities. The partnership reflects a significant move toward establishing large-scale chip production in the country and signals India’s growing relevance in the global electronics supply chain.

The Tata Group is currently developing two major semiconductor sites—an advanced fabrication plant in Gujarat and an assembly-testing facility in Assam. Together valued at nearly $14 billion, these projects are central to India’s long-term strategy to reduce dependence on imported semiconductors and create a more resilient supply ecosystem as global manufacturing gradually shifts away from China.

In a joint announcement, Tata Electronics and Intel confirmed plans to collaborate on manufacturing and packaging Intel products at the new facilities. The companies will also explore advanced chip packaging technologies—an area the Indian government has been actively encouraging under the national semiconductor mission. Once operational, Tata’s fabrication and OSAT units are expected to support Intel’s growing requirement for localized, high-quality production.

Alongside chipmaking, the two giants are turning their focus to India’s rapidly expanding AI PC segment. Both firms will work together to design and scale AI-enabled laptops aimed at consumers and enterprises. With PC adoption rising steadily and AI becoming deeply embedded in everyday workflows, India is projected to become one of the world’s top five PC markets by the end of the decade.

The partnership will combine Intel’s AI compute reference designs with Tata Electronics’ broad manufacturing expertise. Tata Group’s diverse presence across multiple industries is expected to help accelerate product development and bring next-generation AI devices to market more efficiently.

Intel CEO Lip-Bu Tan described India as one of the most promising markets for compute technology, adding that the collaboration offers a “tremendous opportunity” amid the surge in PC usage and AI applications.

Tata Electronics CEO and MD Randhir Thakur said the agreement aligns seamlessly with the company’s long-term semiconductor roadmap. He noted that the partnership aims to deliver improved cost efficiency, faster product rollouts, and greater operational flexibility—factors that will help Intel address rising demand for advanced AI-focused computing.

While India has long been one of the world’s largest consumers of electronics, its presence in chip production has remained minimal. The government’s India Semiconductor Mission has so far cleared around 10 major projects with investments exceeding $18 billion. Tata’s collaboration with Intel stands out as one of the strongest steps yet toward establishing true chip manufacturing capabilities within the country.

If the project progresses as planned, India could soon witness the local production of advanced chips and AI-ready laptops—marking a transformative moment in the nation’s technological journey.