Tata Electronics has identified Intel as a key potential customer as it moves forward with plans to strengthen India’s domestic electronics and semiconductor industry. The Mumbai-based Tata Group is actively building a local supply chain, and this new move represents a significant step in that direction.
Under a newly signed Memorandum of Understanding, the two companies agreed to explore manufacturing and packaging Intel products directly in India. These operations would take place at Tata Electronics’ upcoming facilities and would primarily serve the local market. Beyond manufacturing, Tata and Intel also plan to explore how they can quickly increase the availability of Artificial Intelligence-ready PCs for both everyday consumers and businesses nationwide.
In a statement released on Monday, Tata described the collaboration as a crucial move toward creating a self-reliant electronics ecosystem in India. N Chandrasekaran, the Chairman of Tata Sons, emphasized the importance of this partnership. He noted that working with Intel will help expand the technology ecosystem and allow them to deliver top-tier semiconductor solutions. He believes this position puts Tata well to take advantage of the massive opportunities currently emerging in the AI sector.
Tata Electronics, which launched in 2020, is currently investing billions of dollars to construct India’s first “pure-play” foundry. This facility will manufacture chips for other companies, catering to industries such as automotive, computing, data storage, and artificial intelligence. The firm is also building separate facilities dedicated to assembling and testing these components.
This development comes at a time when India is seeking to address a major economic gap. While the country is one of the world’s biggest consumers of electronics, it cannot currently design or fabricate chips. The Indian government is eager to change this reality. They aim to reduce reliance on imported chips and grab a larger slice of the global market, especially as companies look to diversify their supply chains away from China.
Through the government’s “India Semiconductor Mission,” officials have already approved at least ten semiconductor projects, totaling over $18 billion in investments. Intel’s Lip-Bu Tan called the partnership a huge opportunity. He highlighted that India is one of the fastest-growing computer markets globally, driven by a surge in PC demand and the rapid adoption of AI technology.
