Tata, Intel Form Alliance to Build Silicon and Compute Ecosystem in India

Tata Group and Intel announced that they will work together to develop semiconductor and computing capabilities in India. The alliance, formed through a Memorandum of Understanding (MoU), aims to support the expansion of local manufacturing, packaging, and AI compute markets. 

The companies will explore how Intel products can be manufactured and packaged at Tata Electronics’ upcoming fab and OSAT facilities. They will also examine how to scale AI PC solutions for India, which is projected to become a top-five global market by 2030.

The collaboration will involve work across consumer and enterprise hardware, advanced packaging, and tailored compute designs. The partners plan to draw on Intel’s AI compute reference designs and Tata Electronics’ manufacturing services, along with Tata Group companies’ access to domestic markets.

N Chandrasekaran, chairman of Tata Sons, said the group is “deeply committed to developing a robust semiconductor industry in India.” He said the alliance would help Tata “drive an expanded technology ecosystem.”

This comes at a time when Tata is actively pushing to build its fabrication facility in Dholera, Gujarat. 

Intel CEO Lip-Bu Tan said the company sees a “tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets.” He added that India’s rising PC demand and rapid AI adoption offer strong growth potential.

In his post on X, he mentioned looking forward to bolstering the silicon and compute ecosystem in India. “Intel has been in India for nearly 4 decades, and India is a large and growing market for Intel,” he said.

Randhir Thakur, MD and CEO of Tata Electronics, said the MoU aligns with the company’s roadmap and would “enable a reliable and resilient supply chain.” The companies expect their work to strengthen India’s domestic semiconductor ecosystem and support the development of geo-resilient electronics supply chains.