Tata Electronics, Intel sign MoU to explore chip making, packaging in India

The Tata Group currently operates one semiconductor chip fabrication unit and has an OSAT (Outsourced Semiconductor Assembly and Test) facility under construction at Dholera in Gujarat and Guwahati in Assam, respectively. Under the MoU, Tata Electronics will evaluate manufacturing Intel’s products at the Dholera unit and packaging some of Intel’s chips at the Guwahati OSAT facility.

Tata Sons Chairman N Chandrasekaran stated, “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.”

The collaboration will also explore advanced packaging solutions in India and the potential to scale artificial intelligence (AI) personal computer solutions for consumer and enterprise markets. Intel CEO Lip-Bu Tan added, “We see this as a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets, fueled by rising PC demand and rapid AI adoption across India.”

Tan, recently appointed CEO of Intel, visited India to discuss the partnership and is expected to meet Prime Minister Narendra Modi and Union Electronics and Information Technology Minister Ashwini Vaishnaw.

The Dholera semiconductor unit is the first chip fabrication facility in India approved by the Central Government on February 29, 2024, under the India Semiconductor Mission (ISM). The plant is expected to commence operations by 2027 and will employ approximately 2,000 people. The total investment for the Dholera unit exceeds ₹91,000 crore.