Tata and Intel partner to create silicon and compute ecosystem in India

The Tata Group and Intel Corporation have announced a pivotal strategic alliance aimed at significantly boosting India’s domestic semiconductor and compute ecosystem. The collaboration, formalised through a Memorandum of Understanding (MoU) on 8th December 2025, is a major step towards developing a “geo-resilient electronics and semiconductor supply chain” within India.

The alliance intends to explore joint efforts in consumer and enterprise hardware enablement, alongside semiconductor and systems manufacturing and packaging. Specifically, Intel and Tata plan to investigate the manufacturing and packaging of Intel products for local markets at Tata Electronics’ forthcoming Fab and OSAT (Outsourced Semiconductor Assembly and Test) facilities. Collaboration for advanced packaging in India is also on the cards.

Furthermore, the companies will explore scaling tailored AI PC solutions for India’s consumer and enterprise sectors, with India projected to become a global top-five market by 2030. This effort will leverage Intel’s AI compute reference designs and Tata Electronics’ Electronics Manufacturing Services (EMS) capabilities.

N Chandrasekaran, Chairman of Tata Sons, stressed the strategic nature of the project, stating: “The Tata Group is deeply committed to developing a robust semiconductor industry in India. We are excited to collaborate with Intel, and this strategic alliance would accelerate our efforts. 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.” 

Echoing this optimism, Lip-Bu Tan, CEO of Intel Corporation, noted the immense market potential, saying: “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.” 

Dr Randhir Thakur, CEO & Managing Director of Tata Electronics, added that the MoU “aligns with Tata Electronics’ roadmap across EMS, OSAT, and Semiconductor Fab, enabling a reliable and resilient supply chain for our customers.” This powerful coupling is set to drive cost competitiveness and faster time-to-market for next-generation AI compute in the subcontinent.