In a landmark development for India’s semiconductor ambitions, Tata Group and Intel Corporation have entered a strategic partnership to explore local manufacturing and packaging of Intel chips, a move aimed at strengthening India’s domestic electronics and AI-compute ecosystem. 
Under a memorandum of understanding (MoU) announced on 8 December 2025, the two firms plan to leverage facilities being developed by Tata Electronics: a chip fabrication plant in Dholera, Gujarat, and an outsourced semiconductor assembly and testing (OSAT) facility in Assam. 
The collaboration is not limited to just chip manufacturing. It also includes advanced packaging of Intel products and aims to build a resilient, India-centric supply chain covering design, assembly and end-product integration. 
Through this alliance, Tata and Intel intend to bring localised production of AI-ready PCs and enterprise hardware tailored for the rapidly growing Indian market. Given India’s accelerating demand for AI-powered computing and enterprise tech, the collaboration reflects optimism about the country emerging as one of the world’s top five PC markets by 2030. 
Leaders from both companies emphasized the scale and ambition of the project. Tata Sons Chairman expressed confidence that the partnership would help deliver “leading semiconductors and systems solutions,” capturing the growing AI opportunity in India. Meanwhile, Intel’s leadership called the alliance a “tremendous opportunity” to scale operations in one of the fastest-growing computing markets globally. 
With this move, Tata and Intel signal a major push to reduce India’s dependency on chip imports, accelerate the country’s foray into high-value electronics manufacturing, and contribute to building a robust semiconductor infrastructure on Indian soil.
