Tata and Intel Expand India’s Semiconductor Ambitions With New Partnership

Tata Electronics has secured Intel as a key prospective customer as it advances its goal of creating a domestic semiconductor and electronics supply chain. Through their new agreement, both companies will explore ways to manufacture and package Intel products at Tata’s upcoming facilities. They will also look at how to scale AI-enabled PCs tailored to Indian consumers and enterprises.

Tata said the collaboration represents an important milestone in building a resilient, India-based chip supply chain. Chairman N. Chandrasekaran highlighted that the partnership will strengthen India’s technology ecosystem and position the companies to capture rising AI-driven demand.

Founded in 2020, Tata Electronics is investing heavily to build India’s first dedicated semiconductor foundry. The facility will supply chips for sectors including artificial intelligence, automotive, computing, and data storage. Additional plants for assembly and testing are also underway.

The initiative aligns with India’s broader strategy to reduce dependence on imported chips. Despite being a major electronics market, India has limited fabrication and design capabilities. Under the India Semiconductor Mission, the government has approved more than ten projects with over $18 billion in investment.

Intel CEO Lip-Bu Tan called the partnership a major opportunity to expand in India, citing strong PC demand and rapid adoption of AI technologies across the country.