[News] Intel Emerges as Key Customer for Tata’s $14B Chip Fab and OSAT Buildout in India

Intel is extending its manufacturing footprint by teaming up with India’s Tata Electronics. According to Reuters, Tata has brought Intel onboard as a potential customer for its upcoming fabrication facilities, underscoring Intel’s confidence in India’s growing chipmaking capabilities.

The report states that Tata Group is committing roughly $14 billion to build India’s first semiconductor fabrication plant in Gujarat, along with a chip assembly and testing facility in Assam. According to the Times of India, the Assam site is expected to begin operations in the second quarter of next year, while the Gujarat fab is slated to start production in 2027.

As its press release indicates, the MoU outlines plans for Intel and Tata to explore manufacturing and packaging Intel products for the Indian market at Tata Electronics’ forthcoming Fab and OSAT facilities, as well as potential collaboration on advanced packaging in India.

The press release also notes that Intel and Tata plan to explore ways to rapidly scale customized AI PC solutions for India’s consumer and enterprise markets, which are projected to rank among the world’s top five by 2030.

India has long aimed to position itself as a major hub for global semiconductor manufacturing. Parameter notes that the Tata–Intel collaboration represents one of the clearest steps toward that goal. If executed successfully, the facilities in Gujarat and Assam could draw additional interest from chipmakers seeking to diversify beyond established centers such as Taiwan and South Korea, the report adds.

Meanwhile, Wccftech points out that as an emerging market, India still lacks the supply-chain foundations required for large-scale fab development. As a result, the collaboration will likely need to build a resilient ecosystem from the ground up.

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(Photo credit: Tata Electronics)