Tata Electronics, Intel sign MoU to explore chip making, packaging in India

Tata Electronics and Intel have signed an MoU to explore making Intel products at the Dholera fab and packaging chips at the Guwahati OSAT facility for the India market

Tata Electronics and Intel have signed a memorandum of understanding (MoU) to explore the possiblity of manufacturing and packaging of Intel’s products for Indian markets, the two companies said.

 

As part of the MoU, Tata Electronics will look  at options of manufacturing Intel’s products at the former’s chip fabrication unit at Dholera as well as packaging some of Intel’s chips at the Guwahati Outsourced Semiconductor Assembly and Test (OSAT) facility.

 

“Together, we will drive an expanded technology ecosystem and deliver leading semiconductors and systems solutions, positioning us well to capture the large and growing AI opportunity,” Tata Sons Chairman N Chandrasekaran said.

 

 

The two companies will also look to collaborate for “advanced packaging in India”. Further, the two companies will also explore the possibility of scaling artificial intelligence (AI) personal computer solutions for the consumer and enterprise markets in India, they said.

 

“We see this as a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets, fuelled by rising PC demand and rapid AI adoption across India,” said Lip-Bu Tan, chief executive officer of Intel Corporation.

 

Tan, who recently took over as Intel’s CEO, is in India on a short trip. He is likely to meet Prime Minister Narendra Modi and Union Electronics and Information Technology Minister Ashwini Vaishnaw on Tuesday.

 

The Tata Group currently has one semiconductor chip fabrication unit and an OSAT unit under construction at Dholera in Gujarat and Guwahati in Assam, respectively.

 

The Dholera semiconductor unit is the first chip fabrication facility in India to be approved by the central government on February 29, 2024, under the ambitious India Semiconductor Mission (ISM).

 

The plant is expected to commence operations by 2027 and is anticipated to employ approximately 2,000 people. The chip fabrication unit in Dholera is coming up at a cost of more than ₹91,000 crore.