Tata Group and Intel have forged an alliance focused on developing the semiconductor and compute ecosystem in India.

The companies have signed a memorandum of understanding (MoU) to work together on consumer and enterprise hardware enablement, semiconductor and systems manufacturing, and advanced packaging in the country.

The MoU sets out plans for Intel and Tata Group to explore manufacturing and packaging Intel products for local markets at Tata Electronics’ upcoming fabrication and outsourced semiconductor assembly and test (OSAT) facilities.

Tata Electronics CEO and managing director Dr Randhir Thakur said: “This MoU aligns with Tata Electronics’ roadmap across EMS, OSAT, and Semiconductor Fab, enabling a reliable and resilient supply chain for our customers.

“This collaboration would drive cost competitiveness, faster time-to-market, greater operational agility, and enable Intel products to capture the surging demand for next-generation AI compute in India.”

The partnership will also examine opportunities to expand AI PC solutions for consumer and enterprise markets within India.

According to projections referenced by Tata Electronics, India is expected to become one of the world’s top five markets in this segment by 2030.

The collaboration will make use of Intel’s AI compute reference designs, Tata Electronics’ electronics manufacturing services capabilities, and Tata Group’s access to the Indian market.

Intel CEO Lip-Bu Tan said: “Intel’s technology has driven decades of advancement in computing, and as we continue to innovate, our ambition is to broaden our reach, accelerate growth, and deliver even greater value to our customers.

“We see this as a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets, fuelled by rising PC demand and rapid AI adoption across India.”

Tata Group’s electronics manufacturing division is investing approximately $14bn in building India’s first semiconductor fabrication plant in Gujarat and a chip assembly and testing plant in Assam.

In March 2024, Tata Group held the foundation stone ceremonies for the semiconductor fab in Dholera, Gujarat and the OSAT plant in Jagiroad, Morigaon, Assam.

The new semiconductor fab will produce chips for power management ICs, display drivers, microcontrollers (MCUs), and high‑performance computing logic.

The OSAT plant will specialise in key packaging technologies, including wire bonding, flip‑chip, and integrated systems packaging.