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Tata Electronics has brought Intel on board as the first major potential customer for its upcoming semiconductor plants in India. The two companies have also agreed to explore a collaboration in advanced chip packaging.
Context: the Tata Group is currently building two semiconductor facilities in India worth around $14 billion, a fabrication plant in Gujarat and an assembly-and-testing (OSAT) unit in Assam.
As the companies stated, “Intel and Tata intend to explore manufacturing and packaging of Intel products for local markets at Tata Electronics’ upcoming Fab and OSAT facilities, as well as a collaboration for advanced packaging in India.”
The deets: this partnership framework means Tata and Intel will jointly explore chip manufacturing, packaging, and scaling AI PCs for India. The country is expected to be among the top five markets globally by 2030.
Intel brings its AI compute designs, while Tata brings strong electronics manufacturing capabilities and the massive domestic reach of the Tata Group.
Zoom out: India still relies heavily on imports for advanced chip packaging, with most local work limited to basic assembly.
The country’s semiconductor demand is rising sharply, with data showing the market growing from $24 billion in 2020 to a projected $63–64 billion by 2026.
The government’s official forecast highlights how quickly India is becoming one of the world’s largest chip-consuming economies driven by smartphones, autos, data centres, and electronics manufacturing.
