Tata signs its first major chip customer in Intel
New Delhi: Tata Electronics said on Monday it will manufacture and assemble chips for Intel Corp at its two plants in Gujarat and Assam.
In their statement, the two companies also stated that laptops and desktop computers containing Intel’s chips will be assembled from their domestic assembly facilities.
With this deal, Intel becomes Tata’s first publicly announced major customer for chip facilities. Tata Electronics will assemble Intel’s chips from its outsourced semiconductor assembly and testing (Osat) facility in Jagiroad, Assam.
Earlier this year, union IT minister Ashwini Vaishnaw said Tata’s chip testing facility would begin its first phase of operations as early as April 2026.
The other chip manufacturing or factory facility in Dholera, Gujarat is expected to start producing chips for companies from mid-2027.
Intel, which has its own factories largely in the United States, also contracts manufacturing facilities like the one Tata has built to produce chips at scale. An April 2025 report from Gartner pegged Intel as the world’s third-largest chipmaker, behind Nvidia and Samsung.
As for the laptop assembly part, the two companies said the deal is to meet the growing demand for AI chips in laptops and desktops, with India expected to be one of the world’s top five markets by 2030.
Tata, in particular, works as Apple’s electronics manufacturing services (EMS) partner and accounts for a third of all iPhones produced in the country, according to an Oct. 12 report from market researcher Counterpoint.
It is unclear whether Tata will set up a standalone assembly line for Intel products. The two companies did not specify the potential size of the partnership agreement. Intel Corp had not made a deal with Tata Electronics on the Nasdaq stock exchange in the US, where its shares were listed.
At the signing of the deal, Intel’s chief executive Lip-Bu Tan said the move would help the company “rapidly scale in one of the world’s fastest-growing computing markets, driven by growing PC demand and rapid adoption of AI in India.”
“This collaboration will drive cost competitiveness, accelerate time to market, increase operational agility and enable Intel products to meet the growing demand for next-generation AI computing in India,” added Randhir Thakur, CEO and managing director of Tata Electronics.
Interestingly, before joining Tata Electronics in April 2023, Thakur was serving as head of Intel’s foundry services.
The deal comes amid a tumultuous period for Intel chief Tan, who faced demands to resign from US President Donald Trump earlier this year. Trump later reversed his stance after Tan determined to align Intel with its previous domestic manufacturing push.
Last month, Tan faced allegations that Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest chipmaker, obtained protected information about the latter’s processes by hiring a retired former TSMC executive.
According to Tan Bloomberg On November 21, he denied any wrongdoing, calling such allegations “rumor and speculation.”
Meanwhile, Tata Electronics is set to expand its electronics and semiconductor business following the report ₹66,601 crore revenue in FY25. The company is expected to report another increase this fiscal year, driven largely by increased assembly of Apple’s iPhones.
On September 11, Mint He reported that Tata’s target of making the chip factory functional by mid-2027 may face a significant challenge in the supply of rare earth elements, which are crucial in the semiconductor manufacturing process. Tata’s Osat facility in Assam remains on track to start commercial chip production next year.
