Intel has signed a significant partnership with Tata Group to manufacture and assemble semiconductors in India, aiming to boost domestic chip production and meet growing demand.

The collaboration will focus on AI-enabled PC solutions for both consumers and enterprises, as India is projected to become one of the world's top five PC markets by 2030. The agreement includes assessing semiconductor manufacturing and packaging at Tata Electronics' new facility in Dholera, Gujarat, and its OSAT plant in Assam. Tata is investing Rs 1.18 trillion in these facilities as part of India’s push to develop a domestic semiconductor ecosystem.

The partnership will also combine Intel’s AI compute designs with Tata’s manufacturing capabilities and broad market reach in India, positioning both companies to capitalize on the growing AI opportunity. "We see this as a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest-growing compute markets," said Intel CEO Lip-Bu Tan.