Tata Electronics has officially confirmed a strategic partnership with Intel Corporation, establishing the American semiconductor giant as its first major client for India-based chip production. Under the agreement, Tata will manufacture and assemble chips at its upcoming facilities in Gujarat and Assam, while also assembling laptops and desktops featuring Intel’s chips at domestic units. This milestone positions Tata Electronics at the forefront of India’s growing semiconductor ecosystem.

The collaboration centers on two key facilities: an outsourced semiconductor assembly and testing (OSAT) plant in Jagiroad, Assam, expected to begin operations in April 2026, and a chip fabrication (fab) plant in Dholera, Gujarat, slated for mid-2027. Intel frequently contracts external fabrication facilities to scale production for global demand. According to Gartner in April 2025, Intel ranks as the world’s third-largest chipmaker, following Nvidia and Samsung.

Beyond chip production, Tata Electronics will handle the assembly of Intel-powered laptops and desktops, driven by rising demand for AI-enabled devices. India is projected to become one of the top five global markets for AI chips in PCs by 2030, highlighting the strategic nature of this partnership. Tata Electronics is already a prominent electronics manufacturing services (EMS) provider for Apple, responsible for roughly one-third of all iPhones assembled in India, according to Counterpoint Research. Financial details and specific production lines for Intel products remain undisclosed.

Intel CEO Lip-Bu Tan emphasized the strategic importance of the collaboration, noting it enables Intel to “rapidly scale in one of the world’s fastest-growing compute markets, fueled by rising PC demand and rapid AI adoption across India.” Tata Electronics CEO and MD Randhir Thakur, who previously served as Intel’s president of foundry services, added that the partnership will enhance operational agility, cost competitiveness, and time-to-market, positioning Intel products to meet surging demand for next-generation AI compute.

The announcement comes amid recent challenges for Intel’s leadership. Earlier this year, Tan faced calls for resignation from former U.S. President Donald Trump, later reversed after Tan pledged local manufacturing. More recently, TSMC alleged Tan’s team hired a former executive to procure protected company information—claims Intel has denied as speculation.

Meanwhile, Tata Electronics continues aggressive expansion in electronics and semiconductor production. The company reported a revenue of ₹66,601 crore in FY25 and anticipates further growth this fiscal year, largely fueled by iPhone assembly. While its Assam OSAT facility is on track for next-year chip production, sourcing rare earth elements for the Dholera fab may present challenges, according to Mint on September 11.