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Intel boosts India's chip push with new Tata Group strategic partnership — includes manufacturing and packaging of Intel products for local markets
Intel has signed a strategic partnership with the Tata Group, one of India’s biggest global enterprises, in a bid to boost the country’s indigenous semiconductor and compute ecosystem. According to the announcement, the deal focuses on consumer and enterprise hardware enablement via an MoU (Memorandum of Understanding), which will include manufacturing and packaging of Intel products for local markets as well as advanced packaging in India.
As per a report by the Indian Express, the Tata Group is working on building two semiconductor facilities in India, valued at around $14 billion, including a fabrication plant in the state of Gujarat and an OSAT (Outsourced Semiconductor Assembly and Test) in the north-eastern state of Assam. Additionally, the two companies are exploring an opportunity to scale tailored AI PC solutions for both consumer and enterprise markets in India, with an aim to become the global top five market by 2030.
“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,” said Intel CEO Lip-Bu Tan.
Prior to the aforementioned deal, the biggest chip project in India was announced earlier this year by Tata Electronics, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp., valued at $11 billion. However, the latest deal between Intel and Tata is now the biggest investment for the semiconductor sector in India.
The partnership should also be a strong push for the India Semiconductor Mission (ISM), a flagship programme to develop a full-stack semiconductor ecosystem, from design to manufacturing and testing. Launched back in 2021 under the Ministry of Electronics and Information Technology (MeitY), the ISM came with an initial financial outlay of around $10 billion and an aim to implement key incentive schemes and policy initiatives. Apart from the Tata Group, this initiative includes key global players such as Micron Technologies, Clas-SiC Wafer Fab, and Foxconn.
Kunal Khullar is a contributing writer at Tom’s Hardware. He is a long time technology journalist and reviewer specializing in PC components and peripherals, and welcomes any and every question around building a PC.
