Intel Partners With Tata to Manufacture and Assemble Semiconductors in India With Rs 1.18 Lakh Crore Investment

Intel and Tata Electronics have entered into a memorandum of understanding (MoU) to consider semiconductor manufacturing and packaging in India. This is a strategic alliance to enhance the India presence in the global semiconductor ecosystem and support the surging local demand of PCs and AI-driven solutions. The joint venture will use the future chip fabrication and assembly plant at Tata to manufacture and assemble Intel products to the Indian market.

Manufacturing and Assembly Plans

By the agreement, Tata Electronics will consider opportunities of producing Intel products in its new semiconductor fab unit at Dholera, Gujarat. Also, part of the Intel chips will be packaged in the Outsourced Semiconductor Assembly and Test (OSAT) plant of the company in Guwahati, Assam. The joint venture also features advanced packaging solution plans in India, as the companies are concerned with the state of the art semiconductor technology.

Scaling AI and Consumer PC Solutions

Intel and Tata would both strive to speed up the adoption of AI-enabled PCs by consumers and businesses in India. As the use of AI is quickly increasing and the demand of PCs is also increasing, India will be ranked as one of the top five markets globally by the year 2030. Intel will be supplying AI compute reference designs, and Tata Electronics will be supplying its Electronics Manufacturing Services (EMS) capabilities and wide market penetration, by the Tata Group network.

Investment and Employment Impact

The Tata Group is also putting around 1.18 lakh crore in semiconductor and assembly business. The first in India certified under the India Semiconductor Mission (ISM) is the Dholera chip fabrication unit, which will begin at the earliest opportunity, estimated by 2027. The plant alone will need a capital of more than Rs 91,000 crore and is expected to have approximately 2,000 workers. These attempts will be complemented by the Guwahati OSAT plant which will assist in packing and assembling chips in regional and local markets.

Strategic Importance of the Collaboration

According to Intel CEO Lip-Bu Tan, there was an opportunity to increase operations in one of the fastest-growing computing markets worldwide, with the introduction of AI and PC demand. According to the Tata Sons Chairman N Chandrasekaran, the partnership will move India faster towards a technology ecosystem and ensure delivery of the top semiconductor and system solutions, putting both companies in a position to take advantage of the expanding AI opportunity.