Intel and Tata Group announced that they have reached a cooperation agreement to establish a strategic alliance to explore cooperation focusing on consumer and enterprise hardware empowerment as well as semiconductor and system manufacturing to support India's domestic semiconductor ecosystem, marking an important step in establishing a geographically resilient electronics and semiconductor supply chain in India.
Intel CEO Chen Liwu said that Intel's technology has driven decades of computing advancements, and with continuous innovation, the goal is to expand influence, accelerate growth, and bring greater value to customers. Partnering with the Tata Group is a huge opportunity to rapidly expand in one of the fastest growing computing markets in the world, driven by growing PC demand and rapid adoption of AI in India.
According to the memorandum of understanding (MoU), Tata Electronics will undertake the localized manufacturing of Intel products for the Indian market in the soon-to-be-opened wafer fab and packaging and testing facilities, and carry out cooperation in advanced packaging. At the same time, Intel and the Tata Group plan to explore opportunities to rapidly expand customized AI PC solutions for the consumer and enterprise markets. It is expected that by 2030, India will become the top five markets in the world. This collaboration will also leverage Intel's AI computing reference design and Tata Electronics' capabilities in electronics manufacturing services to broadly enter the Indian market through Tata Group companies.
Tata Group has committed to investing approximately US$14 billion to build India's first wafer fab, which is expected to be put into operation in 2027. It also has packaging and testing facilities, which are planned to be put into operation in the second quarter of next year.