Prime Highlights
- Tata Electronics and Intel have signed a strategic agreement for manufacturing and advanced packaging of Intel’s next-generation AI laptop chips at new facilities in Gujarat and Assam.
- The partnership aims to strengthen India’s position as a global semiconductor hub by improving cost competitiveness, time-to-market, and operational flexibility for Intel.
Key Facts
- Tata Electronics is investing $14 billion in its semiconductor units, with the Assam testing facility set to begin operations in Q2 next year and the Gujarat plant starting chip production in 2027.
- The advanced chip-packaging industry is projected to reach $120 billion by 2032, while India’s AI PC market is expected to be among the top five globally by 2030.
Background
Tata Electronics will manufacture chips and AI-powered laptop components for Intel at its new facilities in Gujarat and Assam, strengthening India’s push to become a major global semiconductor producer. The two companies have signed an agreement that will see Tata handle both manufacturing and advanced packaging for Intel products, according to a joint statement released on Monday.
Tata Electronics is investing $14 billion to build its semiconductor units, marking one of India’s largest commitments to chipmaking. The company’s chip-testing facility in Assam is expected to begin operations in the second quarter of next year, while the Gujarat plant is scheduled to start chip production in 2027. The deal includes Intel’s next-generation laptop chips designed for AI computing, along with advanced chip-packaging technologies. However, the financial details of the partnership were not revealed.
Randhir Thakur, managing director of Tata Electronics and former president of Intel’s foundry services, said the collaboration will boost cost competitiveness and help Intel meet rising demand for AI-driven computing in India. He added that the partnership will also improve time-to-market and enhance operational flexibility.
India is trying to depend less on foreign chip makers and become a major place for making semiconductors, competing with top countries like Taiwan. The country’s AI PC market is expected to be one of the world’s top five by 2030. Globally, the advanced chip-packaging industry is expected to reach nearly $120 billion by 2032.
Tata Electronics, which employs more than 65,000 people, has quickly grown into a key contributor within the Tata Group. The company recorded revenue of ₹66,601 crore in the last financial year, becoming the conglomerate’s sixth-largest business, despite posting a small loss of ₹70 crore just five years after its establishment.
