Intel, the US-based semiconductor giant, has entered into a strategic partnership with Tata Group to manufacture and assemble semiconductors in India for the local market, as announced by the Indian conglomerate on Monday.
The agreement outlines the plans for both companies to explore the rapid scaling of tailored AI PC solutions, which are expected to cater to both consumer and enterprise markets in India. With India projected to be among the top five markets for semiconductors by 2030, the collaboration marks a significant step towards strengthening the country’s semiconductor ecosystem.
According to the official statement from Tata Group, Intel and Tata plan to explore semiconductor manufacturing and packaging at Tata Electronics’ upcoming facilities in Dholera, Gujarat, and Assam. These facilities will focus on Outsourced Semiconductor Assembly and Test (OSAT) and advanced packaging for Intel products aimed at local markets.
Tata Group is in the process of establishing a chip manufacturing plant in Dholera and a semiconductor assembly and packaging plant in Assam, with a total investment of Rs 1.18 lakh crore.
Intel’s CEO, Lip-Bu Tan, expressed excitement over the collaboration, saying, “We see this as a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets, driven by rising PC demand and the rapid adoption of AI across India.”
The partnership aims to leverage Intel’s AI compute reference designs and Tata Electronics’ advanced Electronics Manufacturing Services (EMS) capabilities. The collaboration will also benefit from Tata Group’s broad access to the Indian market, ensuring widespread availability of these next-gen semiconductor solutions.
Tata Sons Chairman, N Chandrasekaran, highlighted the significance of the alliance, stating, “We are excited to collaborate with Intel, and this strategic alliance will accelerate our efforts. Together, we will drive an expanded technology ecosystem and deliver leading semiconductor and system solutions, positioning us well to capture the large and growing AI opportunity.”
The collaboration is set to play a pivotal role in the future of India’s semiconductor and AI industries, further boosting the country’s standing in the global tech market.
Discussion about this post