Tata ropes in Intel as major customer in $14 billion chip venture: Key takeaways

Tata Electronics on Monday signed an agreement with American tech giant Intel Corporation to explore manufacturing and packaging of Intel products for local markets at Tata Electronics' upcoming semiconductor FAB (fabrication plant) and OSAT (Outsourced Semiconductor Assembly & Test) facilities, as well as collaboration for advanced packaging in India.

Key takeaways from the deal

• As part of the MoU, Intel and Tata intend to explore the opportunity to rapidly scale tailored AI PC solutions for consumer and enterprise markets in India, which is projected to be one of the top five global markets by 2030.

• Collaboration to leverage Intel's AI compute reference designs, Tata Electronics' Electronics Manufacturing Services (EMS) capabilities, and broad access to the Indian market through Tata Group companies.

• Tata Group is investing $14 billion to build India's first semiconductor fabrication facility in Gujarat, and a chip assembly and testing facility in Assam.

Tata Sons chairman N Chandrasekaran said that the Tata Group is deeply committed to developing a robust semiconductor industry in India.

"We are excited to collaborate with Intel, and this strategic alliance would accelerate our efforts. Together, we will drive an expanded technology ecosystem and deliver leading semiconductors and systems solutions, positioning us well to capture the large and growing AI opportunity,” he added.

Intel Corporation CEO Lip-Bu Tan said Intel's technology has driven decades of advancement in computing, and as we continue to innovate, our ambition is to broaden our reach, accelerate growth, and deliver even greater value to our customers.

"We see this as a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets, fuelled by rising PC demand and rapid AI adoption across India,” he added.

Tata Electronics CEO and managing director Dr Randhi Thakur said this MoU aligns with Tata Electronics’ roadmap across EMS, OSAT, and Semiconductor Fab, enabling a reliable and resilient supply chain for our customers.

"This collaboration would drive cost competitiveness, faster time-to-market, greater operational agility, and enable Intel products to capture the surging demand for next-generation AI compute in India,” he added.