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New Delhi: Tata Electronics has entered into a deal with Intel, which is its initial key potential client for its future semiconductor plants in India. The alliance will be a major move towards establishing a greater Indian domestic chip ecosystem. Tata Group is now spending approximately $14 billion on two large semiconductor production facilities; one of them is a fabrication facility in Gujarat, and another one is an assembly and testing facility in Assam.
According to both the companies, the agreement is geared towards consolidating India as a hub of semiconductors in the world. The joint venture involves the investigation of the possibilities of producing and high-end packaging of Intel products at the new Fab and OSAT facility of Tata. The companies will also collaborate to serve the increasing need for computing devices based on AI in India.
Intel and Tata will weigh the opportunities of producing and packaging Intel products in the country. The firms explained that such a move was capable of creating a stronger supply chain and reducing the duration taken to introduce new products into the market. Tata Electronics will leverage its growing EMS strengths, whereas Intel will provide its AI compute reference designs and international experience.
The partnership is also aimed at the Indian PC and AI industry that is growing at a rapid pace and is projected to achieve the top five positions in the world by the year 2030. The firms seek to come up with custom AI PCs for the consumers and enterprises. Intel CEO Lip-Bu Tan termed the deal as an enormous chance to ramp up expeditiously in a high-growth computer industry.
Tata Electronics CEO Randhir Thakur affirmed that the MoU is in line with the roadmap of the company in EMS, OSAT, and semiconductor fabrication. He followed up with the partnership as one that will contribute to cost competitiveness and agility, which will facilitate Intel products as the need to experience next-generation AI computing increases in India.
