India’s 156-year-old chip manufacturing venture is adding US tech giant Intel as a significant customer. Tata Electronics, the electronics manufacturing arm of the Tata Group, which operates in many fields from salt to software, announced a customer agreement with Intel for its upcoming chip facilities. This agreement is a critical step demonstrating the US chipmaker’s confidence in India’s ambitious plans to become a global semiconductor manufacturing hub.

Tata and Intel Collaborate

Tata Electronics is investing approximately $14 billion in two separate facilities to achieve India’s chip manufacturing goal. Part of this investment includes establishing the country’s first semiconductor casting plant (Fab) in Gujarat state.

The other part is allocated to building an assembly and testing facility (OSAT) for chips in Assam state. Prime Minister Narendra Modi supports these efforts and aims to make India a global chip producer to compete with global semiconductor giants like Taiwan. This vision aligns with the Indian Semiconductor Mission, which aims to develop the country’s domestic semiconductor manufacturing, design, and packaging.

The collaboration between Intel and Tata Electronics is not limited to manufacturing. The two companies also plan to explore opportunities for rapidly scaling up AI-powered and customized computing solutions for consumer and enterprise markets in India.

The companies expect the Indian market to become one of the top five largest markets in the world by 2030. Intel’s participation as a customer in this massive investment represents significant international support for India’s efforts to secure a strong position in the global supply chain.