Tata Electronics has signed Intel as the first major customer for its ambitious semiconductor manufacturing programme, marking a decisive milestone in India’s journey to become a global chipmaking hub.

The agreement underpins Tata Group’s planned investment of USD 14 billion to build India’s first advanced semiconductor fabrication facility in Gujarat, alongside an assembly and testing unit in Assam. Together, these projects are expected to lay the foundation for a full scale domestic semiconductor ecosystem.

Intel’s onboarding as the anchor customer brings immediate global credibility to the initiative and signals strong confidence in India’s manufacturing capabilities. The partnership is expected to support advanced chip packaging, testing and potentially future fabrication aligned with global technology roadmaps.

The Gujarat fabrication plant will focus on front end manufacturing, while the Assam facility will address assembly, testing, marking and packaging, enabling India to participate across multiple stages of the semiconductor value chain. This integrated approach is critical to reducing import dependence and strengthening supply chain resilience.

Industry leaders view the development as a turning point for India’s semiconductor strategy, moving it from policy intent to commercial execution. The move is also expected to catalyse investments across materials, equipment, talent development and downstream electronics manufacturing.

With global demand for chips accelerating due to artificial intelligence, data centres, electric vehicles and next generation communications, the Tata Intel collaboration positions India to play a meaningful role in one of the world’s most strategic industries.

The agreement not only advances Tata Electronics’ manufacturing ambitions but also reinforces India’s broader vision to emerge as a trusted, scalable and competitive partner in the global semiconductor supply chain.