Tatas to make chips, laptops for Intel in Gujarat, Assam
MUMBAI: Tata Electronics will manufacture chips and laptops for Intel at its upcoming facilities in Gujarat and Assam, as India pushes to compete with semiconductor powerhouses like Taiwan and position itself as a global chipmaking hub. The companies have signed an agreement under which Tata Electronics, which is investing $14 billion for its semiconductor facilities, will manufacture and package Intel products at these new units, they said in a joint statement.Tata’s chip-testing facility in Assam is slated to begin operations in the second quarter of next year, while the Gujarat plant will start chip production in 2027. The agreement covers Intel’s AI-powered laptop chips and advanced chip-packaging technologies, though the size of the deal has not been disclosed.“The collaboration will enhance cost competitiveness, speed up time-to-market, improve operational agility, and help Intel tap into rising demand for next-generation AI compute in India,” said Tata Electronics MD Randhir Thakur, who previously served as president of Intel’s foundry services before joining Tata in April 2023. India’s AI PC market is projected to rank among the world’s top five by 2030, and the advanced chip-packaging industry is expected to reach about $120 billion by 2032 globally. Tata Electronics, which employs over 65,000 people, reported revenue of Rs 66,601 crore in the previous financial year, becoming the Tata Group’s sixth-largest revenue contributor despite posting a modest loss of Rs 70 crore just five years after its launch.
