The Mumbai-based conglomerate Tata Electronics has identified American chip designer Intel as a potential client as the division tries to scale up the domestic electronics and semiconductor supply chain in India.
The companies will consider manufacturing and packaging Intel products within the local markets of Tata Electronics at the upcoming plants, under a Memorandum of Understanding.
Intel and Tata also intend to evaluate how to quickly expand tailored artificial intelligence PC offerings to consumers and companies in India.
Tata announced in a press release on Monday that the collaboration is a critical move towards building a strong India-based electronics and semiconductor supply chain.
Chairman of Tata Sons, the primary holding company of the Tata Group, Natarajan Chandrasekaran, said that “Together [with Intel], 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 Electronics, established in 2020, has been investing billions to construct India’s first pure-play foundry. According to Tata Electronics, the facility will manufacture semiconductor products for AI, automotive, computing, and data storage industries.
Therefore, the company is also constructing new assembly and testing plants. India is also among the largest consumers of electronics in the world, which lacks the capability to design or manufacture chips.
Meanwhile, the Indian government has been trying to reverse that in its attempt to decrease reliance on chip imports and get a larger portion of the world electronics market, which is losing its reliance on China.
Among the semiconductor missions that have been sanctioned by New Delhi under its “India Semiconductor Mission” are a minimum of 10 semiconductor projects with an investment total of over $18 billion.
Intel CEO Lip-Bu Tan claimed that the collaboration with Intel was an enormous opportunity to expand in one of the fastest-developing computer markets, in the growing PC market, and the rapid integration of AI all over India.
