Intel, Tata Set Sights On India's Billion Dollar AI And Semiconductor Opportunity

Tata Group and Intel Corp (NASDAQ:INTC) announced on Monday that they have formed a strategic alliance to jointly strengthen India’s semiconductor and electronics ecosystem.

The companies explored collaboration across hardware enablement, chip manufacturing, and systems production.

Tata Electronics is investing about $14 billion to build India’s first semiconductor fabrication plant in Gujarat and a chip assembly and testing facility in Assam, Reuters reported on Monday.

Also Read: Intel Stock Soars 7% On Report It Could Soon Build Chips For Apple’s Macs

The company has secured Intel as a prospective customer, signaling growing confidence in India’s chip manufacturing ambitions.

Under a memorandum of understanding, the companies plan to evaluate manufacturing and packaging Intel products at Tata Electronics’ upcoming semiconductor fabrication and OSAT facilities in India, while also exploring advanced packaging capabilities inside the country.

They will also assess opportunities to rapidly scale AI-powered PC solutions for consumer and enterprise use in India, using Intel’s AI compute reference designs and Tata Electronics’ electronics manufacturing expertise, as India targets a top-five global PC market position by 2030.

Management Commentary

Intel CEO Lip-Bu Tan said the partnership supports Intel’s goal of expanding its reach and delivering greater customer value by scaling quickly in one of the world’s fastest-growing computing markets, driven by rising PC demand and rapid AI adoption across India.

Intel stock gained 99% year-to-date. Last week, Intel reversed its plan to spin off its networking unit and chose to keep the business in-house, betting that tighter integration will strengthen its AI, data center and edge computing strategy as part of its broader turnaround.

The move comes as global semiconductor peers deepen their presence in India. Marvell Technology Inc. (NASDAQ:MRVL) recently said it is ramping up hiring and research and development in the country to tap into the expanding AI infrastructure market and build long-term growth opportunities.

INTC Price Action: Intel shares were down 2.18% at $40.50 at the time of publication on Monday, according to Benzinga Pro data.

Read Next:

• Rivian To Recall 34,824 Vehicles After Seatbelt Failure Warning

Photo by Tada Images via Shutterstock