Team siliconindia

• Tata Electronics to produce Intel’s AI laptop chips in India
• New Gujarat and Assam facilities to handle manufacturing and packaging
• Partnership boosts India’s semiconductor push and Intel’s market speed

Tata Electronics has signed a major agreement with Intel to manufacture and package the tech giant’s advanced AI laptop chips at its upcoming facilities in Gujarat and Assam. The collaboration marks a significant step in India’s efforts to become a global semiconductor hub and strengthen its presence in next-generation computing.

Under the deal, Tata Electronics will produce Intel’s AI-powered PC chips and handle advanced chip-packaging work at its new $14 billion semiconductor units. The company’s testing and packaging facility in Assam is expected to begin operations by the second quarter of next year, while the Gujarat plant will start full-scale chip production in 2027. The financial details of the agreement were not disclosed.

Tata Electronics MD Randhir Thakur, who previously served as Intel Foundry Services president, said the partnership will help both companies improve cost efficiency, reduce time-to-market and enhance agility as demand for AI-enabled devices rises sharply across India. The country is projected to become one of the world’s top five AI PC markets by 2030.

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The global advanced chip-packaging market is also expanding fast and is expected to reach around $120 billion by 2032. Tata Electronics, which employs more than 65,000 people, reported Rs 66,601 crore in revenue last year. It has rapidly scaled into one of the Tata Group’s largest businesses despite posting a small loss of Rs 70 crore, only five years after its launch.

This collaboration positions India as an emerging force in semiconductor manufacturing, while giving Intel a strategic production base closer to one of the world’s fastest-growing tech markets.