Tata Electronics partners with Intel to strengthen India’s semiconductor supply chain

Tata Electronics has identified Intel as a prospective customer as it accelerates efforts to build India’s domestic electronics and semiconductor ecosystem.

The Mumbai-based Tata Group’s electronics division has signed a Memorandum of Understanding (MoU) with the American chip designer to explore manufacturing and packaging of Intel products for the Indian market at Tata’s upcoming semiconductor facilities.

The partnership aims to evaluate ways to produce and package certain Intel components domestically, thereby supporting India’s ambition to expand its high-value electronics manufacturing base.

Tata Electronics said the collaboration underscores its commitment to building a resilient, India-centric semiconductor supply chain capable of supporting strategic sectors such as computing, artificial intelligence, and advanced electronics.

Joint push on AI PC solutions

Alongside the semiconductor manufacturing exploration, Intel and Tata will also assess opportunities to scale AI-focused PC solutions for both consumers and businesses in India.

With personal computing demand rising and AI rapidly permeating mainstream workflows, the two companies see potential to tailor AI-enabled systems for one of the world’s fastest-growing technology markets.

“This collaboration marks a pivotal step towards developing a resilient, India-based electronics and semiconductor supply chain,” Tata said in its announcement. N. Chandrasekaran, Chairman of Tata Sons, noted that the partnership will help expand the domestic technology ecosystem and accelerate the delivery of advanced semiconductor and systems solutions.

“Together [with Intel], 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 said.

Intel CEO Lip-Bu Tan described the partnership as a “tremendous opportunity” to scale rapidly in India, citing strong PC demand and accelerating AI adoption across the country as major drivers.

India’s push for domestic chip capabilities

Despite being one of the world’s largest electronics consumption markets, India currently lacks large-scale chip design or fabrication capabilities.

The government has been attempting to reverse this through its “India Semiconductor Mission,” which aims to reduce import dependence, attract global manufacturers, and secure a presence in supply chains that are shifting away from China.

At least 10 semiconductor projects worth over $18 billion in cumulative investment have received approval under the programme.

Tata Electronics, established in 2020, is positioned at the centre of this national push. The company has been investing billions of dollars to build what it describes as India’s first pure-play semiconductor foundry.

According to the firm, the planned facility will manufacture chips for sectors including artificial intelligence, automotive, computing, and data storage.

Tata Electronics is also constructing new facilities for assembly and testing, which are integral parts of the semiconductor value chain.

The MoU with Intel reinforces Tata's broader strategy of anchoring advanced manufacturing capabilities within India.

If the collaboration progresses into full-scale production, it could mark a meaningful step toward India’s long-term goal of becoming a competitive global hub for semiconductor manufacturing and electronics innovation.