Wedoany.com Report-Dec.9, Tata Group and Intel have signed a memorandum of understanding (MoU) to collaborate on advancing the semiconductor and computing ecosystem in India, focusing on hardware enablement for consumer and enterprise segments, semiconductor manufacturing, systems production, and advanced packaging.

The MoU outlines plans for Intel and Tata Group to collaborate on manufacturing and packaging Intel products for local markets.

The agreement explores opportunities for Tata Electronics to manufacture and package Intel products at its upcoming fabrication facility and outsourced semiconductor assembly and test (OSAT) plant, serving both local and international markets. This partnership aims to establish a dependable supply chain, enhance cost efficiency, shorten product development cycles, and improve operational flexibility to meet growing demand for advanced artificial intelligence computing solutions in India.

Tata Electronics CEO and Managing Director Dr Randhir Thakur stated: "This MoU aligns with Tata Electronics' roadmap across EMS, OSAT, and Semiconductor Fab, enabling a reliable and resilient supply chain for our customers. This collaboration would drive cost competitiveness, faster time-to-market, greater operational agility, and enable Intel products to capture the surging demand for next-generation AI compute in India."

The initiative also includes joint efforts to promote AI-enabled personal computers for Indian consumers and businesses. Industry forecasts indicate that India could rank among the world's top five markets for AI PCs by 2030, driven by increasing adoption in education, enterprise productivity and digital services.

The collaboration will leverage Intel's reference designs for AI computing, Tata Electronics' electronics manufacturing services expertise, and Tata Group's extensive market presence in India to accelerate product rollout and innovation.

Intel CEO Lip-Bu Tan commented: "Intel's technology has driven decades of advancement in computing, and as we continue to innovate, our ambition is to broaden our reach, accelerate growth, and deliver even greater value to our customers. We see this as a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets, fuelled by rising PC demand and rapid AI adoption across India."

Tata Group is investing around $14 billion through its electronics division to construct India's first semiconductor fabrication plant in Dholera, Gujarat, and an OSAT facility in Jagiroad, Morigaon district, Assam. Foundation stone ceremonies for both projects took place in March 2024.

The Gujarat fab will produce chips for power management integrated circuits, display drivers, microcontrollers and high-performance computing logic. The Assam OSAT plant will focus on advanced packaging methods, including wire bonding, flip-chip bonding and integrated systems packaging.

This strategic alliance supports India's broader push to develop domestic semiconductor capabilities, fostering job creation, technology transfer and self-reliance in high-tech manufacturing while positioning the country as a key player in global electronics supply chains.