In a move to push India forward in the chip manufacturing sector, Tata Electronics has made a significant announcement. The company is going to manufacture chips and laptops for Intel at its upcoming facilities in Gujarat and Assam. This move is significant as India aims to compete with semiconductor powerhouses like Taiwan and position itself as a global chipmaking hub. It is also seen a big development in the chip manufacturing sector.
Tata Electronics is building two large chip factories
The companies have signed an agreement under which Tata Electronics, which is investing $14 billion for its semiconductor facilities. They will manufacture and package Intel products at these new units (Assam and Gujarat), the companies said in a joint statement. Notably, Tata’s chip-testing facility in Assam is set to begin operations in the second quarter of 2026, while the Gujarat plant is slated to start chip production in 2027. The agreement also covers Intel’s AI-powered laptop chips and advanced chip-packaging technologies. However, the size of the deal is not yet disclosed.
Currently, most of the chips used in India are imported, but with the government’s semiconductor mission and Tata’s new factories, the country could become self-reliant in chip manufacturing. As part of the agreement, Intel will provide its AI-based design technology, while Tata will handle the manufacturing.
Tata Electronics MD Randhir Thakur said, “The collaboration will enhance cost competitiveness, speed up time-to-market, improve operational agility, and help Intel tap into rising demand for next-generation AI compute in India.” Thakur, previously served as president of Intel’s foundry services before joining Tata in April 2023.
Who will benefit from this? Will prices drop in India?
Regarding this deal, Intel CEO Lip-Bu Tan says that India is becoming the world’s largest computer market. He added that demand for AI-enabled computers is growing rapidly here, especially in India and consequently, this partnership will benefit both companies. Meanwhile, Tata Electronics CEO Thakur says that this partnership will also prove beneficial for the public, as it will ensure timely delivery of products to customers, reduce costs, and bring new technologies to market faster.
India’s Semiconductor Mission to gain strength
India’s semiconductor mission is definitely going to gain strength from this, as despite the massive consumption of electronics, chip manufacturing has remained largely unrepresented in the country. To address this, the government launched the India Semiconductor Mission. Currently, more than 10 projects have been approved under this initiative. The partnership between Tata and Intel will benefit both companies, as well as the country and the government’s mission. This could potentially lead to India becoming one of the top five computer markets in the future.
