Intel announced that Tata Electronics has secured the company as its first prospective customer for the $14 billion semiconductor investment in Gujarat and Assam. The partnership marks a milestone for Intel’s IDM 2.0 strategy, giving the company a tangible external order for its advanced‑node foundry services and validating its ability to compete with pure‑play foundries.
The Gujarat fab, located in Dholera, is slated to begin production in 2027 and will focus on mature process nodes ranging from 28 nm to 110 nm, targeting analog, logic, and mixed‑signal ICs that power India’s growing AI and edge‑compute markets. The Assam OSAT facility is expected to start operations in Q2 2026 and will provide packaging and testing services for the same product portfolio.
Intel’s product roadmap for the Tata fabs includes AI‑powered laptop chips and other compute‑intensive components that will serve India’s projected AI PC market, which analysts expect to become a top‑five global market by 2030. The partnership is therefore a key enabler for both companies to capture the surging demand for next‑generation AI compute.
Intel’s CEO, Lip‑Bu Tan, said the alliance “provides a tremendous opportunity to collaborate with Tata to rapidly scale in one of the world’s fastest‑growing compute markets, fueled by rising PC demand and rapid AI adoption across India.” Tata’s Chairman, N Chandrasekaran, added that the collaboration “will accelerate our efforts to build a robust semiconductor ecosystem and deliver leading semiconductors and systems solutions, positioning us well to capture the large and growing AI opportunity.”
The deal is a critical step toward Intel’s goal of reaching break‑even on its foundry business by 2027. The company has posted heavy losses in the segment, but the secured external order from Tata is expected to improve fab utilization and bring the business closer to profitability. The partnership also aligns with India’s “India Semiconductor Mission,” which aims to create a geo‑resilient supply chain and reduce dependence on East Asian manufacturing hubs.
Overall, the Intel‑Tata collaboration signals a significant shift in the global semiconductor landscape, expanding Intel’s manufacturing footprint into India and providing Tata with a high‑profile foundry customer. The partnership is expected to strengthen Intel’s competitive position against TSMC and other pure‑play foundries while supporting India’s ambition to become a major semiconductor manufacturing hub.
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