According to a Memorandum of Understanding between the two companies, Tata Electronics and Intel are set to explore opportunities for manufacturing and packaging Intel products at Tata’s new facilities. This initiative aims to cater to local markets, enhancing the availability of cutting-edge technology within India.

Further collaboration between Intel and Tata Electronics will focus on developing and scaling personalized artificial intelligence solutions for PCs, aimed at meeting the diverse needs of both consumers and businesses across India.

In a statement released on Monday, Tata emphasized that this collaboration represents a significant milestone in the journey towards establishing a robust, India-centric electronics and semiconductor supply chain. This partnership is expected to play a crucial role in advancing the country’s technological capabilities.

In a press release on Monday, Tata said that the collaboration marks a pivotal step towards developing a resilient, India-based electronics and semiconductor supply chain.

“Together [with Intel], we will drive an expanded technology ecosystem and deliver leading semiconductors and systems solutions, positioning us well to capture the large and growing AI opportunity,” said N Chandrasekaran, Chairman of Tata Sons, the principal investment holding company of Tata companies. 

Tata Electronics, established in 2020, has been investing billions to build India’s first pure-play foundry. The facility will manufacture semiconductor products for the AI, automotive, computing and data storage industries, according to Tata Electronics. 

The firm is also building new facilities for assembly and testing. 

India, despite being one of the world’s largest consumers of electronics, lacks chip design or fabrication capabilities. 

However, the Indian government has been working to change that as part of efforts to reduce dependence on chip imports and capture a bigger share of the global electronics market, which is shifting away from China.

Under New Delhi’s “India Semiconductor Mission,” at least 10 semiconductor projects have been approved with a cumulative investment of over $18 billion.

Intel CEO Lip-Bu Tan said the partnership with Intel was a “tremendous opportunity” to rapidly grow in one of the world’s fastest-growing computer markets, fueled by rising PC demand and rapid AI adoption across India.