Tata Electronics partners with Intel to manufacture and assemble semiconductors in India
By Cygnus | 09 Dec 2025
In a major boost to India’s semiconductor ambitions, US chipmaker Intel has signed a Memorandum of Understanding (MoU) with Tata Electronics to collaborate on manufacturing, assembly, and advanced packaging of chips within the country. The partnership is designed to strengthen India’s local supply chain while aligning with the government’s push to expand domestic chip production.
Under the agreement, both companies will explore manufacturing and advanced packaging of Intel products at Tata Electronics’ upcoming semiconductor fabrication plant in Dholera, Gujarat, and its OSAT (Outsourced Semiconductor Assembly and Test) facility in Assam. These sites, part of Tata’s comprehensive ₹1.18 lakh crore investment in India’s semiconductor ecosystem, are expected to become central hubs for next-generation chipmaking.
The collaboration also extends to accelerating AI-powered computing solutions. With India projected to be among the world’s top five PC markets by 2030, Intel and Tata aim to jointly scale tailored “AI PC” solutions for consumer and enterprise markets. The partnership will combine Intel’s AI compute reference designs with Tata Electronics’ manufacturing prowess and the Tata Group’s extensive market reach.
Strategic Industry Impact
Intel CEO Lip-Bu Tan stated that the partnership comes at a pivotal moment, noting India’s rapidly growing PC demand alongside the rising adoption of AI tools. “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,” Tan said.
Tata Sons Chairman N. Chandrasekaran added that the alliance strengthens Tata’s broader semiconductor roadmap. “Together, 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.”
Tata Electronics CEO Randhir Thakur highlighted that the MoU supports the company’s integrated strategy across Electronics Manufacturing Services (EMS), OSAT, and chip fabrication, helping build a “reliable and resilient” supply chain for customers, including a crucial focus on advanced packaging technologies within India.
FAQs
Q1: What does this agreement cover?
The MoU covers collaboration on manufacturing, packaging (OSAT), and advanced packaging of Intel chips at Tata’s facilities in Dholera and Assam. It also includes a partnership to co-develop and market “AI PC” solutions for the Indian market.
Q2: Is Intel building its own factory in India?
No. Under this agreement, Intel will primarily utilize Tata Electronics’ facilities (the Fab in Gujarat and OSAT in Assam) to manufacture and package its products, leveraging Tata’s ₹1.18 lakh crore investment in the ecosystem.
Q3: Who is leading Tata Electronics?
Tata Electronics is led by CEO Randhir Thakur, a semiconductor veteran who previously served as the President of Intel Foundry Services, providing a strong strategic link between the two companies.
Q4: Why is this important for India?
It validates India’s semiconductor ambitions by attracting a top-tier global player like Intel, establishing a local ecosystem for high-tech manufacturing, and building capabilities in the critical areas of fabrication, OSAT, and advanced packaging.
