Tata Electronics has entered into a strategic collaboration with US based chip major Intel to explore manufacturing and advanced packaging of Intel products in India. The partnership will also examine opportunities in AI focused personal computing, including AI enabled laptops and PCs. The announcement focuses on technical collaboration and does not include confirmed production volumes or commercial launch timelines.
Intel’s involvement gives Tata Electronics an anchor customer as it builds new semiconductor facilities in the country. Both companies will work together on manufacturing and advanced packaging, while also assessing opportunities in AI compute systems. This development comes at a time when global chipmakers are spreading manufacturing across multiple countries, and India is seeking a stronger role in global supply chains.
At the centre of the collaboration are 2 major semiconductor projects being developed by Tata Electronics. The first is a greenfield chip fabrication plant in Gujarat, planned to manufacture advanced semiconductor components. The second is an assembly, packaging and testing unit in Assam that will process silicon wafers into finished chips. Together, these sites form the core of Tata Electronics’ semiconductor plans and are part of the company’s “bigger picture”.
The Assam facility is expected to begin operations in 2026. Chip production from the Gujarat plant is planned for a later phase around mid 2027. Intel is participating in a technical capacity linked to manufacturing and packaging at these facilities.
The total investment across the 2 sites is estimated at nearly 14 billion dollars, making it one of the largest private sector commitments in India’s electronics manufacturing space. Industry observers see Intel’s participation as a strong signal of confidence in both Tata Electronics and India’s semiconductor policy framework, which offers incentives for fabrication, packaging and advanced manufacturing.
Beyond chips, the partnership also supports Intel’s AI push in India. The companies will explore AI compute and AI PC development, with the possibility of AI capable laptops and personal computers being assembled in India. While the work remains exploratory, demand for AI PCs is growing in the Indian market.
The collaboration aligns with India’s broader effort to expand domestic capabilities across fabrication, packaging and testing. As the global semiconductor market moves towards an estimated value of 1 trillion dollars by the end of the decade, India is shifting from being largely a consumer to becoming an active manufacturing participant.
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